UK Government Commits to Nigeria’s Capital Market for Sustainable Development
Salamatu Ejembi, Lagos
The UK government says it will continue to support Nigeria in the development of its capital market to help deliver the country’s economic goals, including its ambitions to transition to clean energy solutions.
It plans to achieve this through the “Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme”.
British Deputy High Commissioner to Nigeria, Jonny Baxter, at the MOBILIST events hosted by the Nigerian Exchange Limited (NGX) and the British Deputy High Commission in Lagos said 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.
Baxter said, “MOBILIST’s focus on stimulating the creation of innovative listed products can make a unique and impactful contribution to achieving these objectives.”
The MOBILIST Programme Lead at the Foreign, Commonwealth and Development Office , Ross Ferguson, stated that the programme was an evidence of commitment to deepening the UK relationships in the Nigerian market as it seeks to identify businesses and SDG-aligned assets that need support.
She said “MOBILIST is the expression of the UK’s conviction that public markets have a leading role to play in financing sustainable development by mobilising private capital to flow where it is needed most – to firms tackling development challenges and the climate transition.”
The Chairman of the NGX, Ahonsi, Unuigbe, used the occasion to highlight the need for addressing barriers hindering public listings through collaborative discussions.
According to him,Unuigbe said, “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 said, “An enhanced and efficient listing process would democratise access to capital, nurturing a vibrant entrepreneurial ecosystem, particularly businesses dedicated to the achievement of Sustainable Development Goals (SDGs), can flourish.”
On his part, the Ag CEO of NGX, Jude Chiemeka, emphasized the impact of the partnership with MOBILIST, saying that this is geared towards advancing market efficiency, sustainability reporting, and integrating Environmental, Social, and Governance (ESG) principles.
“This 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, poised to yield actionable insights on how we can collectively catalyse economic growth through the capital market,”he stated.
Chiemeka said 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 flagship UK government programme, MOBILIST supports investment solutions that help deliver the climate transition and the United Nations Global Goals in developing economies, focusing also on mobilising institutional capital to spur new scalable and replicable financial products.
MOBILIST also offers equity capital as well as technical assistance to facilitate the listing of pioneering products that support the delivery of the SDGs. It also provides policy and research support to enhance the environment for issuers, investors, and intermediaries.
The partnership between the Nigerian Exchange Limited and the UK in the MOBILIST programme was announced in August last year by the former UK Foreign Secretary, James Cleverly during a visit to the trading floor of the Nigerian Exchange.
