The UK Government is committed to supporting Nigeria to develop its thriving capital markets and sees its Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme as a strong basis for collaboration with Nigeria’s financial sector.
Nigeria’s capital market can help contribute to the delivery of the country’s economic goals, including the ambition to transition to clean energy solutions, but needs around $10 billion in financing per year to meet the Sustainable Development Goals (SDGs) by 2030.
At two MOBILIST events hosted by the Nigerian Exchange Limited (NGX) and the British Deputy High Commission (BDHC) in Lagos on Tuesday, the UK underlined its commitment to work with Nigeria to enable private capital mobilisation at scale. The events in the Nigeria’s financial hub brought together stakeholders from across the finance community, including representatives of the Securities and Exchange Commission (SEC) and pension fund industry, to discuss opportunities to solve some of the principal barriers to increasing investment in the SDGs via public markets.
This week’s events come after former UK Foreign Secretary James Cleverly’s visit to Nigeria last year and his participation in the launch of the partnership between MOBILIST and NGX intended to catalyse greater investment in the SDGs via new investment structures listed on the exchange.
MOBILIST provides investment capital in the form of equity as well as technical assistance to overcome barriers and enable the listing of pioneering products that can mobilise institutional capital at scale to deal with the twin challenges of development and the climate transition. MOBILIST also offers extensive research and policy advocacy support to highlight obstacles and enhance the environment for issuers, investors, and intermediaries.
According to the Organisation for Economic Co-operation and Development (OECD), the African continent needs additional financing of about $194 billion annually to achieve the SDGs by 2030. Closing this financing gap cannot be achieved without mobilising private investment at scale and enhanced collaboration between capital market stakeholders, multi-lateral 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.
“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. He said: “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 that, “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.”
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