The African Development Bank Group has 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 bank said in a statement at the weekend that the funds would go towards strengthening the risk-based supervision framework, regulation of derivatives and green bonds, and building capacity for green finance.
It added that the grant, sourced from the Capital Markets Development Trust Fund, a multi-donor fund administered by the bank, was aligned with the priorities of the AfDB’s country strategy for Nigeria.
According to the bank, this strategy envisages measures to stimulate capital market development to unlock financial resources for productive sector investments, infrastructure development and private sector growth.
This collaboration further underscores our mutual goal to grow our markets and create viable avenues for sustainable economic development for Nigeria and the region,” SEC’s Director General, Lamido Yuguda, remarked at the virtual signing ceremony.
The Senior Director of the AfDB’s Nigeria Country Department, Lamin Barrow, noted “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.”
Chief Executive Officer of the Nigerian Stock Exchange, Oscar Onyema, thanked the bank and the commission for the partnership to build in-house capacity at SEC, the NSE, issuers and investors in the sustainable finance space.