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Nigeria: SEC and Market Stakeholders Advocate Increased Listing of Infrastructure Bonds by FG

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SEC and Market Stakeholders Advocate Increased Listing of Infrastructure Bonds by FG
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The Securities and Exchange Commission (SEC) and various stakeholders in the capital market are urging the Federal Government to prioritize the listing of infrastructure bonds over savings bonds to address the country’s growing infrastructure needs.

This call was made during the 2023 workshop organized by the Capital Market Correspondents Association of Nigeria, focusing on ‘Leveraging the Capital Market in Financing the National Development Plan,’ held in Lagos.

Lamido Yuguda, the Director-General of the Securities and Exchange Commission, emphasized the importance of adopting a multifaceted approach to effectively harness the capital market for national development. He suggested deploying more infrastructure bonds, fostering public-private partnerships, establishing specialized entities like special purpose vehicles, listing state-owned enterprises, and issuing green bonds to support sustainable projects.

Yuguda stated, “By adopting these strategic approaches, governments and market participants can create a dynamic capital market that attracts diverse investments, fuels economic growth, and contributes significantly to national development goals.” He reiterated the commitment of the apex regulator to creating an enabling and regulatory framework supportive of the deepening and development of the Nigerian Capital Market.

During a panel discussion, Mr. John Briggs, the Deputy Director of the SEC Lagos Zonal office, stressed the need for the government to introduce infrastructure financing instruments that facilitate easy servicing of obligations. He highlighted the encouragement of various infrastructure funds, such as Sukuk and green bonds, to create a conducive and transparent market environment that attracts investments.

In a paper presentation, Professor Uche Uwaleke, a Capital Market expert at Nasarawa State University, disclosed that achieving the objectives of the National Development Plan would require a significant investment commitment of N348 trillion. The emphasis on infrastructure bonds aims to address this financial requirement and contribute to the successful implementation of the development plan.

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