Financial System Strategy 2020 FSS 2020 FSS 2020

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Financial System Strategy 2020 (FSS 2020) FSS 2020: Financial Markets Sector Updates A PRESENTATION

Financial System Strategy 2020 (FSS 2020) FSS 2020: Financial Markets Sector Updates A PRESENTATION TO Q 2 CAPITAL MARKET COMMITTEE (CMC) MEETING 2018 BY: M. D. SULEYMAN DIRECTOR FSS 2020

Outline • Financial Markets Forum • Green Bonds Initiative • Commodities market Slide 2

Outline • Financial Markets Forum • Green Bonds Initiative • Commodities market Slide 2

Financial System Strategy 2020 Financial Markets Forum INITIATIVE Status Update Financial Markets Forum •

Financial System Strategy 2020 Financial Markets Forum INITIATIVE Status Update Financial Markets Forum • The objective of the forum is to collaborate, brainstorm and fast track the development of the financial markets sector objectives with implementing institutions and relevant stakeholders. The Forum discussed the development of Green Finance in Nigeria with emphasis on the Green Bond Market Other critical issues discussed are: • Credit rating review for micro and small organizations • Overall framework of how Nigerian businesses can benefit from credit rating • Issuing guidelines/requirements of credit rating agencies • DMO has obtained Debt record from the States; 24 States had debt records as at March, 2018. • Sukuk has been listed on FMDQ OTC and investments in Sukuk have been used for infrastructural development • Financial Reporting Council has established the Repository platforms for submission of the financial statement. 3

Green Bond Initiative Financial System Strategy 2020 INITIATIVE Status Update SEC presented the prerequisites

Green Bond Initiative Financial System Strategy 2020 INITIATIVE Status Update SEC presented the prerequisites for issuing Green Bonds in Nigeria; the stringent Rules for the utilization and management of Green Bonds and the role of SEC in Green Bond usage in Nigeria. Green Bond Initiative as a Long term Product Development by FMDQ OTC Securities presented a paper on Green Bonds the Capital Market featuring: § Features of Green Bonds § Country experiences indicating the utilization capacity of green bonds § Areas and sectors where Green Bond Finance can be emphasized § Green Bond development in Nigeria § The role of FMDQ in the development of Green Bonds in Nigeria -Developing a pipeline for green investment -Harmonization of green bond objectives among stakeholders. 4

Financial System Strategy 2020 Commodities Market INITIATIVE Status Update Commodities Market i. Pursuant to

Financial System Strategy 2020 Commodities Market INITIATIVE Status Update Commodities Market i. Pursuant to the Long term Financing Product Development, NCX has fully completed the development of five warehouses and has achieved the implementation of trading system for the exchange. Also, further research has been undertaken on commodities such as maize, sorghum, sesame, and rice for agricultural value chain. ii. AFEX has launched the e-trading system which resulted in trading activities in the system with seven institutions already on board. Also, achieved increase in financial inclusion of farmers by enabling access to BVN machines and agency banking in their locations. AFEX has engaged with key off-takers to aggregate required commodities post harvest 5