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The Nigeria-United Kingdom Capital Markets Project on Tuesday stepped up efforts to enhance capital flows into the Nigeria capital market by launching a report aimed at encouraging the long-term development of the market.
The report, ‘Nigerian capital market – Legal and regulatory review and recommendations’ called for focused intervention on market integrity and regulatory infrastructure as well as enhanced market incentives and greater diversity to enhance liquidity.
At a news briefing, which was held at the Lagos State Governor’s Office, the President, Nigeria Stock Exchange, Mr. Aigboje Aig-Imoukhuede, and the former Lord Mayor of London, Sir Roger Gifford, co-chairs of the UK Emerging Capital Market Taskforce in Nigeria, explained that the report contained detailed recommendations for the legal and regulatory environment.
It also contained recommendations on how the market could attract more domestic and international investments.
Gifford explained that one of the experiences the UK shared and which Nigeria was working towards was the need for collective efforts by stakeholders in the capital market.
According to him, the report focuses on four areas – integrity of the market, regulatory infrastructure, capacity building and market development.
He said, “The report reviews and makes recommendations for reforms that would deepen the Nigeria capital market and attract both domestic and international institution players. This is essential to the benefit of Nigeria as we also hope it will be to the benefit of the international institutions.”
Gifford, who noted that several capital market groups had contributed for the growth of the Nigerian market, stressed that there was no reason why more of the huge funds available in the UK should not be invested in Nigeria.
The Lagos State Governor, Mr. Akin Ambode, who noted that the role of the capital market was vital, pledged support for the Nigeria-UK capital market project, stressing that the state would provide the right environment for investors.
Noting that Lagos State had the fifth largest economy in Africa, he said, “Lagos state has an important role to play in this process, not just as the host of the key market platforms, but as the largest issuers of sub-sovereign bonds in the Nigerian capital market.”
He commended the NSE for coming up with initiatives that have led to the development of the capital market and Lagos State.
Aig-Imoukhuede, who explained that the emerging capital market project was initiated by the UK government to facilitate the exchange of ideas and other things in a structured manner, explained that Ambode, being an accomplished accountant, understood what the task force was trying to achieve.
He said, “Not only has significant time and effort been put into the research and delivery of this report, but the collective action of a broad group of market participants behind an initiative to enhance our capital markets over the long term is a very positive move.”
One of the co-authors of the report, Elizabeth Uwaifo, explained that the Nigeria Delivery Group had worked as a collective with the common goal of deepening the capital markets for long-term growth.
She said, “In line with the reports key recommendation, the group has resolved to institutionalise its current interim structures. This will enable it to play a long-term role in the development of the Nigerian capital markets, and to replicate the valuable role played in the UK by the City UK organisation.”
Three further reports are expected to be produced by the Nigeria Delivery Group and its UK partners over the next 15 months, focused on increasing capital flows between the UK and Nigeria, capacity building, and development of markets and products.
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