By Chukwuma Umeorah
The Minister of Finance, Budget and National Planning, Zainab Ahmed is set to launch the Revised Capital Market Master Plan that is expected to be the Roadmap for the capital market in the next few years. This was as the Securities and Exchange Commission (SEC) has scheduled to hold the Third Quarter Capital Market Committee (CMC) Meeting on November 24, 2022 in Lagos. The 10-Year Master Plan launched in 2014 is being revised to reflect the dynamism of the market and developments in financial technology, among others.
According to the Director General of the SEC, Lamido Yuguda, the Revised Capital Market Master Plan 2015-2025 (RCMMP), developed by the Commission in collaboration with stakeholders, captures the challenges of the market in actualising its role in driving national economic growth and more importantly, providing the blueprint to harness these opportunities to better position it as engine of economic growth and development.
Yuguda said, “The first five years of the original Capital Market Master Plan 2015-2025 (CMMP) implementation focused on market and governance reforms in the aftermath of the global financial crises of 2008 and the Nigerian market correction that continued into 2009, with significant success. During that period, stock certificates were dematerialised, dividend management was automated, corporate governance standards were improved, intermediaries were strengthened through revised capital requirements and risk based supervision, amongst several other initiatives implemented under the CMMP.
“Today, we face new challenges and opportunities. The pursuit of innovation and growth requires that we are open to opportunities and risks. Our choices are limited if we only seek opportunities within our traditional boundaries. Similarly, we inhibit our ability to grow if we do not curtail the threats of unregulated risk taking.
Promoting entrepreneurial and innovative outcomes, therefore, requires balancing our openness and more appetite for risk-taking with the critical need to protect investors. It is important to contextualize our aspirations within the fundamental objectives of market integrity and investor protection while pursuing economic growth. The RCCMP has provided a framework and outlined strategic initiatives that will help embrace and unlock these opportunities in our capital market.”
The SEC Boss expressed appreciation to the Financial Sector Deepening Africa (FSDA) for funding the work of the RCMMP and to the capital market community for aligning with the Commission’s vision and committing to support the implementation of the Plan.
The CMC meeting set to hold with the launch of the Masterplan is with key stakeholders in the capital market on November 24, while the usual interface with the press, on the outcome of the CMC meeting, will take place on Friday, November 25.
Since the unveiling of the ten-year CMMP in November 2014 and has continued to implement the initiatives, which are designed to reposition the Nigerian Capital Market as an attractive investment destination and a critical facilitator of capital formation for the accelerated growth and development of the Nigerian economy.
Some of the CMMP initiatives that have been implemented include; Direct Cash Settlement, regularization of multiple subscriptions, dematerialization of share certificates, and the introduction of the e-Dividend Management System.
“The CMMP initiatives have helped in promoting transparency, protecting investors and enhancing market confidence. The objectives of the CMMP are also in consonance with the Federal Government’s economic strategy, which focused on encouraging a private sector-led economy to drive inclusive growth.
Expected participants at the meeting include Chief Executive Officers (CEOs) of all registered capital market firms (i.e. Broker/Dealers, Investment Advisers, Custodians, Fund/Portfolio Managers, Receiving Banks, Issuing Houses, Rating Agencies, Registrars, Reporting Accountants, Trustees, and Capital Market Consultants, etc.);
Others include; Chief Executive Officers of Nigerian Exchange Group (NGX), National Association of Securities Dealers (NASD); FMDQ Group Plc; Africa Exchange Holdings (AFEX); Nigeria Commodity Exchange (NCX); Central Securities Clearing System (CSCS); as well as representatives of relevant financial sector regulatory agencies, among others.