Nigeria: SEC and Partners Foster Capital Raising for Non-Oil Sector

The Securities and Exchange Commission (SEC) in collaboration with the Federal Ministry of Mines and Steel Development (FMMSD) and other stakeholders has taken steps to promote alternative means of raising capital for the non-oil sector in Nigeria.

Among the alternative means are non-interest products, tokenization of assets, and the adoption of innovative technologies. This decision was reached during a two-day workshop focused on financing the Nigerian solid minerals sector through the capital market and the crucial role of commodities exchanges.

The workshop also highlighted the importance of prioritizing STEM (Science, Technology, Engineering, and Mathematics) education at basic, secondary, and tertiary institutions, and urged the FMMSD and Federal Ministry of Education to re-prioritize their focus in this regard.

In a communique issued at the conclusion of the workshop, the participants emphasized the need for the capital market community to establish the necessary market infrastructure to support mining ventures, while ensuring investor protection.

Furthermore, the stakeholders committed to promoting sustainable practices and Environmental, Social, and Governance (ESG) standards within the mining industry. They also stressed the significance of geoscience data availability, as it is vital, along with relevant market data, for enabling intermediaries and commodities exchanges to structure products for the mining sector.

One of the major challenges identified during the workshop was the interference in mining activities by state governments, affecting mining companies’ operations. To address this issue, the FMMSD, in collaboration with SEC and other stakeholders, will develop capacity in the industry and work towards resolving conflicts arising from overlapping state and federal laws and oversight.

By fostering innovative capital-raising methods and addressing industry-specific challenges, the SEC and its partners aim to strengthen and diversify the non-oil sector, contributing to Nigeria’s overall economic growth and development.