The UK Government has pledged its dedication to aiding Nigeria in cultivating its vibrant capital markets, highlighting the Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) program as a promising avenue for cooperation with Nigeria’s financial sector.
Emphasizing the potential of Nigeria’s capital market in advancing the country’s economic objectives, including the transition to clean energy solutions, the UK stressed the need for approximately $10 billion in annual financing to achieve the Sustainable Development Goals (SDGs) by 2030.
These commitments were reaffirmed during two MOBILIST events hosted by the Nigerian Exchange Limited (NGX) and the British Deputy High Commission (BDHC) in Lagos on Tuesday, where the UK reiterated its resolve to facilitate substantial private capital mobilization in collaboration with Nigeria.
The events convened various stakeholders from the financial community, including representatives from the Securities and Exchange Commission (SEC) and the pension fund industry, to explore avenues for overcoming barriers to increased investment in the SDGs through public markets.
This week’s gatherings build on the momentum generated by former UK Foreign Secretary James Cleverly’s visit to Nigeria last year, which culminated in the launch of a partnership between MOBILIST and NGX aimed at catalyzing greater investment in the SDGs through innovative investment structures listed on the exchange.
MOBILIST provides equity investment and technical assistance to address obstacles hindering the listing of innovative products capable of mobilizing institutional capital at scale to address development challenges and climate transition. Additionally, it offers extensive research and policy advocacy to improve the environment for issuers, investors, and intermediaries.
According to the Organization for Economic Co-operation and Development (OECD), closing the $194 billion annual financing gap needed to achieve the SDGs in Africa requires mobilizing private investment on a large scale and fostering collaboration between capital market stakeholders, multilateral development banks, development finance institutions, and policymakers.
British Deputy High Commissioner Jonny Baxter, while delivering his remarks at the event, said: “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.”
In his goodwill remarks, the Chairman, NGX, Ahonsi, Unuigbe, highlighted the need for addressing barriers hindering public listings through collaborative discussions. In his words: “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 democratise access to capital, nurturing a vibrant entrepreneurial ecosystem, particularly businesses dedicated to the achievement of Sustainable Development Goals (SDGs), can flourish.”
MOBILIST Programme Lead at the FCDO, Ross Ferguson said: “MOBILIST is the expression of the UK’s conviction that public markets have a underutilised but potentially critical role in financing sustainable development at scale by mobilising 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.”
Earlier in his welcome address, the Ag 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 deepening of Nigeria’s capital market by promoting sustainable capital flows and enhancing listing diversity.
Tbe discussions from today are poised to yield actionable insights on how we can collectively catalyse 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”.
