The Government of the United Kingdom has said that it will support Nigeria’s capital market to ensure sustainable development in the country.
This was made known on Wednesday in a press statement released by the Foreign, Commonwealth & Development Office Senior Press & Public Affairs Officer, Ndidiamaka Eze.
The statement said Nigeria needs about USD 10 billion per year to meet the Sustainable Development Goals. The UK government plans to help fill this gap through its MOBILIST initiative (Mobilising Institutional Capital Through Listed Product Structures).
MOBILIST provides investment capital and technical help to list new products that attract large-scale institutional investment for development and climate transition. It also offers research and policy support to identify obstacles and improve conditions for issuers, investors, and intermediaries.
“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,” said British Deputy High Commissioner Jonny Baxter at two MOBILIST events hosted by the Nigerian Exchange Limited (NGX) and the British Deputy High Commission (BDHC).
“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,” Baxter added.
In his goodwill remarks, NGX Chairman Ahonsi Unuigbe emphasized the importance of addressing barriers to public listings through collaborative discussions. He stated:
“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.”
He added, “An enhanced and efficient listing process will democratize access to capital, nurturing a vibrant entrepreneurial ecosystem where businesses dedicated to achieving Sustainable Development Goals (SDGs) can flourish.”
Ross Ferguson, MOBILIST Programme Lead at the FCDO, said:
“MOBILIST is the expression of the UK’s conviction that public markets have an underutilized but potentially critical role in financing sustainable development at scale by mobilizing private capital to flow where it is needed most – to the firms that are going to contribute most to solving developmental challenges and help deliver a fair and orderly climate transition for Nigeria. We are committed to deepening our relationships in the Nigerian market as we seek to help position Nigeria’s capital markets at the forefront of these efforts.”
While delivering the welcome address, the Acting CEO of NGX, Jude Chiemeka, emphasized the impact of the partnership with MOBILIST. He stated:
“Our partnership with MOBILIST is geared towards advancing market efficiency, sustainability reporting, and integrating Environmental, Social, and Governance (ESG) principles. This event represents a significant milestone in our ongoing efforts to enhance the performance and depth of Nigeria’s capital market by promoting sustainable capital flows and enhancing listing diversity. The discussions today are poised to yield actionable insights on how we can collectively catalyze economic growth through the capital market. By harnessing the potential of our capital market, we can unlock new opportunities for funding businesses, fostering entrepreneurship, and ultimately driving sustainable development across Nigeria.”
“The events in Nigeria’s financial hub brought together stakeholders from across the finance community, including representatives from the Securities and Exchange Commission (SEC) and the pension fund industry, to discuss opportunities to address some of the main barriers to increasing investment in the SDGs via public markets.
“These events follow former UK Foreign Secretary James Cleverly’s visit to Nigeria last year and his participation in the launch of the partnership between MOBILIST and NGX, which aims to catalyze greater investment in the SDGs through new investment structures listed on the exchange, the statement read in part.
