Nigeria Seeks Closer Ties Among African Capital Markets for Growth
By Patience Ikpeme
The Securities and Exchange Commission (SEC) of Nigeria has called for enhanced cooperation among African capital markets to foster stronger interconnection within the continent and stimulate the development of innovative financial products.
The Director General of the Nigerian SEC, Dr. Emomotimi Agama, made this appeal during a visit by the SEC board to the Autorite Marocaine Du Marche Des Capitaux (AMMC), the Moroccan Capital Market Authority, in Rabat on Monday.
“We need to cooperate in Africa, invest in each other’s market and grow our continent. We want to build collaboration so that as Africans we can have a focus and build a strong interconnection. The time is now for us to look inwards,” Dr. Agama stated.
He acknowledged Morocco’s strength in Collective Investment Schemes (CIS), expressing Nigeria’s interest in learning from their expertise. “We are aware of your strength in Collective Investment Schemes and we know we can learn a lot from you. The population of Nigeria is huge and we need people to understand the huge benefits in CIS and how they can key into it,” he said.
Dr. Agama also expeessed Nigeria’s appreciation for the strength and structure of the Moroccan economy, seeking to understand the capital market’s role in its development. “We appreciate the strength of the Moroccan economy and structure and we want to see what role the capital market has played in all of this,” he added.
He described the capital market as the central driving force of the economy, asserting the need for citizens to understand its potential for wealth creation and improved quality of life.
According to Dr. Agama, “The capital market is an enabler to the development of the economy and we believe there is so much to learn from Morocco to help strengthen our own market. We are excited about what the future holds for us and how we can forge a common front.”
He expressed enthusiasm about the progress of CIS in Morocco and the potential for mutual learning and growth. “We are happy about the progress of CIS in Morocco and we want to learn from you and also tell you about our experience because there is a lot to gain. Our relationship and Integration will go a long way in building both markets and make life better for our citizens. We encourage governments to use long-term capital for long-term projects.”
Dr. Agama positioned the capital market as a key solution for raising funds for long-term infrastructure development and moving the economy forward. “We see the capital market as a solution provider to move the economy forward. We want to make Africa better and a destination of choice. We want to jointly work with other regulators to achieve it.”
In response, the Chairperson and CEO of the Moroccan Capital Market Authority, Ms. Nezha Hayat, expressed her pleasure at the relationship between the two regulatory bodies. She noted the evolution of the capital market and the increasing preference for investment within it.
Ms. Hayat stated, “Capital market has now diversified so much, but for us everything goes through mutual funds. We think CIS is very important because people put their money in funds that are regulated and are controlled. People have more access through CIS. It is key to encourage the truth of any market.”
She voiced her support for market integration, stating, “I believe in an integrated market so cooperation is better. We are interested in dual listing; we will soon be authorizing funds in foreign currency which means the mutual funds can also be invested in foreign countries. We have a special focus on Nigeria, which will be one of the markets where this will happen. We need to deploy initiatives that will focus on developing our continent.”
Also speaking during the visit, the Chairman of the SEC Nigeria Board, Mr. Mairiga Katuka, conveyed the SEC’s interest in learning from other jurisdictions to improve the functioning of the capital market in Nigeria.
