Capital market master plan receives 30% implementation, says PWC

As Ahmed, Yuguda, Ajayi unveil revised document
PWC Nigeria has disclosed that the level of implementation achieved in the 10-year Capital Market Master Plan (CMMP) introduced in 2014 was 30 per cent.

The CMMP was designed to reposition the Nigerian capital market as an attractive investment destination and a key facilitator of capital formation for accelerated growth of the market.

At the unveiling of the Revised CMMP, held in Lagos, yesterday, Senior Associate, PWC Nigeria, Bolanle Adekoya, said out of the 111 proposals identified for implementation on the various themes of the master plan, only 30 initiatives were completed.

She said implementation of the initiatives was constrained by various factors, which include: limited collaboration among stakeholders, definition not properly given to key performance indicators, and low investor confidence in the market due to weak corporate governance practice among others.

According to her, in response to the changing socioeconomic trend and low implementation of the CMMP, PWC was engaged by FSD Africa to review and update the existing master plan.

Earlier, Minister of Finance, Budget and National Planning, Zainab Ahmed, described investor confidence as a major factor that will accelerate growth and stimulate activities in the capital market.

Represented by the Director General, Debt Management Office, Ms. Patience Oniha, Ahmed pledged Federal Government’s commitment to continue to support the SEC in performing its regulatory function in a more efficient manner.

According to her, the market should be characterised by high level of compliance, ethical standards, in-depth liquidity, good corporate governance and a strong domestic investor base to boost confidence.

“Nigeria needs a capital market that broadens access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and distribution, while providing capital for small and medium-scale enterprises.

“I consider the revised capital market master plan a veritable tool, which the capital market must use as it drives key initiatives towards achieving the country’s economic growth objectives,” she said.

Ahmed also stated that implementation of the master plan is one of the key initiatives in the 40-deliverables of the presidential mandate of the Federal Ministry of Finance, Budget and National Planning.

According to her, this underscored the fact that capital market growth resonates with the current administration’s unwavering commitment to deepen and reposition the financial market as a key anchor to achieving a private sector-led development of the economy, as emphasised in the National Development Plan (NDP) objectives.

“This administration and especially, my office, has supported the capital market master plan implementation efforts since inception. The master plan, which represents collective aspirations of the capital market community, is focused on driving initiatives geared towards growing and deepening the market, with the ultimate goal of accelerating the emergence of our country in the top 20 global economies by the year 2025.”

Ahmed commended the SEC, CAMMIC and the capital market community for the laudable achievements, especially, in the areas of dematerialisation of share certificates, e-dividend mandate management system, facilitation of access to alternative investments and enhancing the commodities trading eco-system.

She said: “I am also aware of ongoing efforts on other initiatives, like the direct cash settlement, introduction of derivatives, financial literacy, enhancing market liquidity, incentives for listings, growth of collective investment schemes and leveraging fintech solutions in the capital market.

“I assure you of government’s support in all these efforts and I am confident in your ability to successfully drive these initiatives to fruition. As you chart the course for the next phase of the CMMP implementation, I assure you of the Federal Government’s support, and look forward to working with you to realise the plan’s objectives.”