Nigeria launches revised capital market master plan

Nigeria's Securities and Exchange Commission (SEC) has recently unveiled a revised capital market master plan aimed at propelling the growth of the nation's capital market and boosting both domestic and foreign investor participation. Dr. Mou Omar Megbe, the Director and Head of Strategy at SEC, sat down with CNBC Africa to delve into the details of this significant development. The original capital market master plan was first introduced in 2016 as a blueprint jointly crafted by the Securities and Exchange Commission and various market stakeholders. The primary objective of the plan was to establish a modern, efficient, and internationally competitive market that would serve as a catalyst for Nigeria's economic progress and development. Over the years, several key initiatives have been successfully implemented to advance the goals outlined in the master plan. These initiatives include initiatives like the dematerialization of share certificates, the rollout of the E-dividend mandate, and the introduction of direct cash settlement. Moreover, efforts have been made to deepen the non-interest capital market to foster inclusivity and diversity. In light of the ever-evolving market landscape, which has witnessed the rise of Fintech and technological advancements such as blockchain, the revised master plan has been tailored to adapt to these changes. Dr. Megbe highlighted the importance of incorporating innovations like Fintech into the market strategy to leverage digital assets and facilitate crowdfunding, particularly for micro, small, and medium enterprises (MSMEs). These adaptations aim to address the gaps in the market structure while enhancing efficiency and transparency. The updated plan features a more streamlined approach with a reduced number of initiatives, set targets, and key performance indicators to ensure effective and efficient implementation. One of the key strategic themes of the revamped master plan is enhancing market confidence, promoting transparency, and safeguarding investors' interests. Fintech integration emerges as a top priority to capitalize on emerging technologies and drive market growth. By collaborating with Fintech firms, the SEC looks to expand market access to previously underserved segments, such as MSMEs, fostering a more inclusive and dynamic market environment. Dr. Megbe emphasized the importance of continuous engagement with stakeholders to address challenges, harness opportunities, and sustain market momentum. The SEC's commitment to regular dialogue with market participants underscores its dedication to fostering a collaborative ecosystem. An essential aspect of the revised master plan is the focus on robust implementation and stakeholder engagement. Dr. Megbe underscored the significance of stakeholder buy-in and active involvement in driving the plan's objectives to fruition. The revised plan emphasizes accountability and ownership of initiatives, establishing clear partnerships with key stakeholders to ensure a coordinated and effective execution strategy. Ongoing performance monitoring and measurement mechanisms have been instituted to track progress and steer the market in the right direction. In conclusion, the launch of Nigeria's revised capital market master plan signifies a pivotal step towards accelerating economic growth, enhancing market resilience, and attracting more investors. The SEC's strategic alignment with market trends and its commitment to stakeholder collaboration bode well for the future trajectory of Nigeria's capital market. The concerted efforts to embrace innovation, strengthen investor protection, and promote market integrity are poised to drive sustainable development and prosperity in the Nigerian financial landscape.