The African Development Bank, AfDB, on Friday, signed a $400,000 grant agreement with the Securities and Exchange Commission, SEC, of Nigeria to strengthen securities market regulation and broaden market instruments.
The funds will go towards strengthening the risk-based supervision framework, regulation of derivatives and green bonds, and build capacity for green finance, a statement issued by the AfDB said.
According to the bank, the grant will be sourced from the Capital Markets Development Trust Fund, a multi-donor fund administered by the Bank.
“This collaboration further underscores our mutual goal to grow our markets and create viable avenues for sustainable economic development for Nigeria and the region,” the Director General, SEC, Lamido Yuguda, said at the virtual signing ceremony.
The statement said the project would support the implementation of the SEC’s Nigeria Capital Market Master Plan 2015-2025 and its vision to position Nigeria’s capital market as a competitive and attractive destination for portfolio investments.
Lamin Barrow, Senior Director of the Bank’s Nigeria Country Department, noted the urgency of the implementation of the project.
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“At a time when countries are striving to build back better from the ravages of the COVID-19 pandemic, improvement of the enabling regulatory and supervision framework will boost domestic resource mobilisation efforts and leverage private sector contributions to achieve a greener, more environmentally sustainable and inclusive post-pandemic recovery,” Barrow said.
The Chief Executive Officer, Nigerian Stock Exchange, Oscar Onyema, thanked the AFDB Group and the SEC for the historic event and partnership, to build in-house capacity at SEC, the Nigerian Stock Exchange, issuers and investors in the sustainable finance space, saying it will help to meet climate finance commitments in Nigeria.
