The Securities and Exchange Commission (SEC) and the African Development Bank (AfDB) Group have agreed to a grant of $460,000 for a market surveillance system project.
The transaction is expected to modernise Nigeria’s capital market and reposition it to support the country’s private-sector investment drive.
According to the SEC, the grant will be used to fund capacity building and other technical assistance for capital market development as part of the ‘Nigeria Securities Market Surveillance System Project’.
Mr Lamin Barrow, Director General of the African Development Bank, stated at the ceremony that the grant from the Capital Markets Development Trust Fund (CMDTF) – a multi-donor trust fund administered by the African Development Bank and supported by the Luxembourg Ministry of Finance and the Netherlands Ministry of Foreign Trade and Cooperation – will support the acquisition, installation, and deployment of a real-time automated securities market surveillance system in the Nigerian capital market.
He said: “Today’s ceremony marks yet another important milestone in our partnership and efforts to modernise Nigeria’s capital market and ensure it is well positioned to support economic transformation driven by private sector investment”.
“The introduction of a surveillance system will enhance oversight over securities trading across all existing and future trading platforms and all tradable securities and products by SEC. It will, therefore, preserve securities market integrity, boost investor confidence and enhance financial inclusion, among other expected outcomes”.
According to him, the design of the technical assistance project incorporates training activities to strengthen the capacity of users of the securities market surveillance system, preparation of relevant operational manuals, workflow processing, and document management for the surveillance solution to ensure sound implementation and sustainability.
He stated that the bank’s support for the project stems from the Nigerian government’s efforts to promote the development of a competitive, deep, and liquid capital market, aided by a favourable regulatory environment.
He added: “The technical assistance support builds on SEC’s initiatives to strengthen the supervisory and regulatory framework as well as enhance market integrity and transparency under the Nigeria Capital Markets Development Master Plan 2015-2025, to position Nigeria as an attractive destination for portfolio investments.
It also aligns with the Bank’s Country Strategy Paper for Nigeria 2020-2024, which recognises the importance of a sound, well-regulated, resilient, effectively functioning and globally competitive financial market in Nigeria for sustainable growth and development”.