Nigeria’s capital market chief regulator, the Securities and Exchange Commission (SEC), has unveiled a 10-year master plan aimed at developing a bond market capable of meeting the country’s infrastructure deficit estimated at US$3.9 trillion over the next 30 years.
The private Guardian newspaper Tuesday quoted SEC Chief Executive Officer Arumah Oteh as saying in the capital city of Abuja that the master plan, when fully implemented, would deepen
the market and restore investors’ confidence.
“We want a capital market that combines all the elements needed to support Nigeria actualise her aspirations of peace and prosperity for all citizens,” Oteh said.
She cited the experiences in Kenya, Malaysia and other countries where the launch of the capital market master plan had immensely deepened market capitalisation and created opportunities for inclusive growth of their economies.
The SEC boss expressed the optimism that Nigeria’s 10-year capital market master plan would impact positively on the poor and micro enterprises if all stakeholders remain committed to its implementation.
“We have been involved in ensuring that investor confidence is restored by adopting a posture of zero tolerance to wrongdoing while strengthening our enforcement machinery through partnerships with the Office of the Attorney General of the Federation and the Nigeria Police Force,” she added.
To strengthen the enforcement machinery, SEC has also instituted legal proceedings against over 260 individuals and entities for various forms of market infractions, while taking steps to disgorge all illegally gotten wealth and restitute investors.
Some other initiatives taken include developing a robust complaint management framework, setting up the National Investor Protection Fund and strengthening Anti-Money Laundering and Counter Terrorism Financing (AML/CFT) framework.
These initiatives have led to a market that has witnessed remarkable progress in all spheres.
Nigerian domestic bond market in recent time has attracted different categories of issuers, including state governments, government agencies and companies.
A breakdown of the current bond market capitalisation shows a total of 9.95 trillion Naira, comprising of 4.10 trillion Naira of Federal Government of Nigeria (FGN) bonds, 4.35 trillion Naira of Asset Management Corporation of Nigeria (AMCON) bonds and 1.5 trillion Naira state governments and corporate bonds.