The Securities and Exchange Commission, Nigeria, SEC, Thursday, said it has commenced a joint-review of Nigeria’s 10-year Capital Markets Master Plan, CMMP, with Financial Sector Deepening, FSD, Africa, to reflect current realities, such as the impact of the COVID-19 pandemic and dwindling crude oil prices.

In a statement in Abuja, SEC stated that the review became necessary, in view of the need to support the country’s economic resilience amid new economic challenges, as presented by lower oil prices and the COVID-19 pandemic.

According to the capital market regulator, the review of the CMMP would see it work with FSD Africa’s Regulator Support Programme to develop a revised 10-year CMMP that would strengthen Nigeria’s capital markets’ and their capacity for capital mobilization.

It noted that the CMMP provides a vision for Nigeria’s capital market, as well as a roadmap with objectives to meet it.

It explained that the process would involve an assessment of progress made since the plan’s implementation to date and would also witness engagement with stakeholders for input.

This, SEC added, would result in the introduction of more stringent tools to measure the plans progress against objectives, and the inclusion of new challenges, opportunities and risks related to the current environment into the plan.

It said: “The review of the CMMP comes in response to changes in the economic and market circumstances upon which the plan was originally based on when launched in 2015, that needed updating to match the current environment. These include the effects of lower oil prices on Nigeria’s economy as well as a slowdown in economic activity due to the COVID-19 pandemic. The introduction of new initiatives and products will help to improve the liquidity and depth of Nigeria’s capital markets.

“FSD Africa’s support comes as part of its ongoing multi-country programme to strengthen Africa’s capital markets. The programme is centred on the development of capital markets master plans, conducting institutional capacity assessments, and creating capacity for sustainable finance such as green bonds, helping markets to adapt to their operating climate.”

Commenting on the review, Director General of SEC Nigeria, Mr. Lamido Yuguda, said: “The implementation of the Capital Market Master Plan will deepen our market and improve the capital market’s contribution to our economic growth and national development.

To this end, the review of the Capital Market Master Plan better positions the SEC to deliver on these objectives in these very challenging times. The FSD Africa and SEC Nigeria’s laudable partnership underscores our mutual goals to build financial markets that are robust, efficient and above all inclusive.”

Speaking in the same vein, Evans Osano, Director, Capital Markets at FSD Africa, said: “This review will give market stakeholders in Nigeria a unique opportunity to not only take stock of the plan’s results so far, but also to grow and respond to previously unforeseen economic developments. As FSD Africa works to support and regulate financial markets in Sub-Saharan Africa, we are excited to be partnering with SEC Nigeria to enable them to strengthen the country’s capital markets during a time of immense upheaval.”