By Peter Egwuatu
The Securities and Exchange Commission (SEC) and African Development Bank (AfDB) Group have signed an agreement on the Nigeria risk based supervision framework implementation and capacity building project.
The signing ceremony which took place on Friday, also featured the Nigerian Stock Exchange (NSE) which will collaborate with SEC and other industry experts to implement initiatives aimed at promoting Green Bond market development.
According to information from the NSE, the AfDB will provide technical assistance as well as a grant from the capital market Development Trust Fund – a multi-donor trust fund – administered by the AfDB dedicated to the development of African capital markets.
Speaking at the signing ceremony, the Senior Director, AfDB Group, Mr. Lamin G. Barrow, noted that, “We are very delighted to sign this agreement, which enable us accelerate the implementation of key initiatives.
The grant will enhance the capacity of the SEC in risk based supervision framework for the financial and securities market, strengthen operational readiness in the areas of risk-based publishing, derivatives and green bonds trading market. It will provide capacity building and training programmes for the NSE, issuers and institutional investors on green bonds, as well as market operators and regulators from the wider Economic Community of West African States (ECOWAS) region.
Experience has shown that countries with developed domestic capital markets have posted stronger economic growth and structural transformation and that is why AfDB Group is supporting the emergence of a well-functioning and resilient financial and capital market in African countries through various mechanisms.”
The Director-General, SEC, Mr. Lamido Yuguda, also stated, “The SEC is focused on capacity development as a catalyst to drive the actualisation of the 10-Year Capital Market Masterplan 2015 – 2025. Consequently, the SEC designed a targeted training programme to address gaps in regulation and market development to enhance the commission’s readiness to effectively regulate new products and promote the growth of the capital market. Some of these initiatives include the procurement of surveillance solutions, capacity building in the areas of risk based supervision, green finance and derivatives.
Realising these focus areas align with AfDB’s high five priority sectors for the economic transformation of Africa, we leveraged our strong partnership with AfDB to drive some of these key initiatives to strengthen internal and issuers’ capacity. We are pleased and thankful to AfDB for providing the grant and supporting in the execution of this project.