UK Gov’t Pledges Support To Nigeria’s Capital Market

The United Kingdom has reaffirmed its commitment to support Nigeria in developing its capital market through the Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme.

This initiative aims to enhance collaboration with Nigeria’s financial sector, helping the country meet its economic and sustainable development goals.

This was made known on Tuesday at the MOBILIST events hosted by the Nigerian Exchange Limited (NGX) and the British Deputy High Commission (BDHC) in Lagos. It was emphasised that Nigeria needs approximately $10billion annually to meet the Sustainable Development Goals (SDGs) by 2030.

The UK government highlighted its dedication to mobilising private capital at scale to bridge this financing gap.

The events brought together key stakeholders from the finance community, including representatives from the Securities and Exchange Commission (SEC) and the pension fund industry. The discussions focused on overcoming barriers to increasing investment in the SDGs through public markets.

Former UK Foreign Secretary James Cleverly’s visit to Nigeria last year marked the beginning of a partnership between MOBILIST and NGX, aimed at catalyzing greater investment in the SDGs via innovative investment structures listed on the exchange.

MOBILIST provides not only investment capital but also technical assistance to overcome obstacles and enable the listing of pioneering products. This initiative is supported by extensive research and policy advocacy to improve the environment for issuers, investors, and intermediaries.

According to the Organisation for Economic Co-operation and Development (OECD), Africa requires an additional $194 billion annually to achieve the SDGs by 2030. Mobilising private investment at scale and enhancing collaboration between capital market stakeholders, multilateral development banks, and policymakers is essential to close this financing gap.

British Deputy High Commissioner Jonny Baxter remarked, “The UK government is committed to supporting Nigeria in the continued development of its capital market to help deliver the country’s economic goals, including its ambitions to transition to clean energy solutions. A liquid and well-regulated capital market benefits the entire economy by enabling companies to raise capital to fund their expansion, which in turn helps deliver crucial development, job opportunities, and improved incomes. MOBILIST’s focus on stimulating the creation of innovative listed products can make a unique and impactful contribution to achieving these objectives.”

NGX Chairman, Ahonsi Unuigbe, also emphasised the importance of addressing barriers to public listings through collaborative discussions.

“The discussions we have today are crucial as we address barriers hindering public listings and explore actionable solutions. By overcoming these obstacles, we can unlock the full potential of our capital market, enabling more businesses to access the funding they need to grow and thrive. Some of these obstacles are significant such as regulatory challenges, high listing costs, and market volatility. An enhanced and efficient listing process will democratize access to capital, nurturing a vibrant entrepreneurial ecosystem, particularly businesses dedicated to the achievement of Sustainable Development Goals (SDGs), can flourish,” he stated.