Financial System Strategy 2020 FSS 2020 Initiatives Financial

Financial System Strategy 2020 FSS 2020 Initiatives: Financial Markets Sector Updates A PRESENTATION TO Q 4 CAPITAL MARKET COMMITTEE (CMC) MEETING Dr. Charles Ohamara Head, Financial Markets FSS 2020 1

FSS 2020: Financial Markets Status Update s/n INITIATIVES Financial System Strategy 2020 1. Status Updates Long Term Financing SEC has developed rules for infrastructure funds for the Capital Product Development Market and approved five(5) infrastructure funds. SEC has also developed rules for Non-interest finance products including Sukuk(currently one sukuk product in the market). PFAs invested N 2 billion in the Nigeria Infra Debt Fund awaiting other issues targeted at infrastructure projects nationwide. Pension Funds invested in the recently introduced Sukuk bond. Acquisition of warehouses for the smooth operation of the warehouses receipt system and concomitant liquidity on NCX Twenty warehouses obtained from the FMARD are already inspected for renovation. Additional twenty nine warehouses required to handle projected volume of transaction on the NCX. 2

FSS 2020: Financial Markets Status Update contd. Financial System Strategy 2020 2. Framework and Structure for Commodities Provision of enabling environment to support development of the Commodities Market. SEC has all relevant rules and regulations for effective operations of commodities exchanges SEC also is supporting efforts to revamp the NCX. Five agricultural commodity contracts namely maize, sorghum, soya beans, sesame seed and cocoa are already developed. Commodity contracts developed are listed for trading on NCX. Development of more agricultural contracts is ongoing. Passage into law of a Bill on Warehouse Receipt and other related matters that would enhance financial inclusion of the farming population and improved livelihood of farmers has been undertaken. Public hearing on a Bill for an Act on Warehouses Receipt and other related matters has been conducted. 3

FSS 2020: Financial Markets Status Update contd. Financial System Strategy 2020 3. Advocacy and Incentives to Expand Capital Market Listing NSE is marketing large national corporates under current initiatives designed to engender large companies to list on NSE by providing reduced listing cost across the value chain. Inauguration of CAMMIC as a capital market advocacy group: CAMMIC engaged the Presidency, Ministries(Trade & Investment, Finance, Budget and National Planning, Power, Works& Housing), National Assembly, and CBN. Fiscal and other incentives for listing are being pushed by the CAMMIC through Ministry of Finance and other stakeholders. Technical Committee on attraction of new Listings carried out extensive multi-industry stakeholder engagements to create awareness and solicit listings in the market. Engagement with institutions such as BPE to enforce the listing clauses in their privatization/ sales agreements. NSE is working with the government to put an incentive structure for large companies to list on the NSE. 4