AfDB grants SEC $400,000 to support capital market in Nigeria

March 6, 2021 9:37 am

The African Development Bank (AfDB) has signed a $400,000 grant agreement with Securities and Exchange Commission (SEC) to strengthen securities market regulation and broaden market instruments in Nigeria.

AfDB said the funds will go towards strengthening the risk-based supervision framework, regulation of derivatives and green bonds, and build capacity for green finance.

It said the grant will be sourced from the capital markets development trust fund, a multi-donor fund administered by AfDB.

Speaking at the virtual signing ceremony, Lamido Yuguda, director-general of SEC, said: “This collaboration further underscores our mutual goal to grow our markets and create viable avenues for sustainable economic development for Nigeria and the region.”

Also, Lamin Barrow, senior director at AfDB Nigeria country department, said: “At a time when countries are striving to build back better from the ravages of the COVID-19 pandemic, improvement of the enabling regulatory and supervision framework will boost domestic resource mobilisation efforts and leverage private sector contributions to achieve a greener, more environmentally sustainable and inclusive post-pandemic recovery.”

The bank further said the grant is aligned with the priorities of AfDB’s country strategy for Nigeria which envisages measures to stimulate capital market development to unlock financial resources for productive sector investments, infrastructure development and private sector growth.

Oscar Onyema, chief executive officer of the Nigerian Stock Exchange (NSE), thanked AfDB and SEC “for this historic event and partnership, to build in-house capacity at SEC, the Nigerian Stock Exchange, issuers and investors in the sustainable finance space, which will help to meet climate finance commitments in Nigeria.”

According to AfDB, the project will support the implementation of SEC’s capital market master plan 2015-2025 and its vision to position Nigeria’s capital market as a competitive and attractive destination for portfolio investments.