The Nigerian Capital Market Master Plan 2015 2025

The Nigerian Capital Market Master Plan (2015 – 2025) Implementation Tracking Tuesday 9 th August 2016 CAPITAL MARKET PROJECT MANAGEMENT 1 TEAM (CMPMT)

OUTLINE Introduction: Master Plan Implementation Architecture Update on CAMMIC Activities Update on Major Initiatives for 2016 Next Steps Conclusion 1 CAPITAL MARKET PROJECT MANAGEMENT TEAM (CMPMT)

Introduction: Implementation Architecture Sep 2013: 3 Marketwide committees inaugurated Nov. 2014: Reports of the 3 committees compiled into Master Plan and launched Development phase 2 Jan 2015: Implementation began Nov 2015: CAMMIC was inaugurated 2016: Major CAMMIC engagements to push for National ownership 2017 – 2025: Entire market faithfully implements the Plan Implementation phase (2015 – 2025) CAPITAL MARKET PROJECT MANAGEMENT TEAM (CMPMT)

Update on CAMMIC Engagements Minister of Finance: 13 th June 2016 • Minister committed to champion the Master Plan at the highest levels • Convened a roundtable among CAMMIC, FIRS and DMO to address identified issues Minister of Budget and National Planning: 13 th June 2016 • Agreed to mainstream the Master Plan into National Development Policy Speaker of the House of Representatives: 14 th June 2016 • Gave the National’s assembly’s full commitment to give all legislative support • To champion the listing agenda and other initiatives to deepen the market The Vice President: 20 th June 2016 • Promised the Federal Government’s support for developing the market • Agreed to consider specific demands from CAMMIC Minister of Trade and Investment: 21 st June 2016 • Assured CAMMIC of close partnership to reform the investment climate • Expects specific submissions from the capital market on ease of doing business CBN Governor: 21 st June 2016 • Gave CBN’s support for CAMMIC • Asked for stronger investor protection initiatives from the capital market 3 CAPITAL MARKET PROJECT MANAGEMENT TEAM (CMPMT)

Major Issues Discussed at the Ministerial Roundtable q. CAMMIC compiled a detailed position paper on tax issues affecting the capital market and Nigeria’s competitiveness q. Major issues deliberated upon include the following: q. Double taxation q. Improving Nigeria’s investor-friendly climate on issues related to taxation q. Incentives to encourage companies to list as well as improve saving and investing in CIS, REITs, Sukuk, Hold. Cos, etc q. Innovative ways to widen the tax net and improve government’s revenue q. CAMMIC also itemized issues related to the DMO with a view to improving the capital market’s efficiency and maintaining regulatory integrity and harmony q. Refocusing the DMO to effectively perform its mandated roles q. Supporting the DMO to raise funds for the government and to develop the FGN bond market by issuing new products like Diaspora bond and Sovereign sukuk q. Developing a framework for Federal Government guarantees q. SEC will continue to play a very crucial coordinating role to achieve the Master Plan objectives. From the roundtable, some of the tasks SEC is expected to carry out include: q. Developing a new and innovative set of guidelines to make bond application and approval process a lot more efficient q. Developing new rules to improve tax compliance levels in the capital market (which already has far greater compliance) 4 CAPITAL MARKET PROJECT MANAGEMENT TEAM (CMPMT)

Snapshot of 2015 Initiatives Dematerialization Recapitalization NIPF Corporate Governance Scorecard “ “ Completed Direct Cash Settlement Uncompleted 2015 initiatives were carried forward and are still under implementation in 2016 Ongoing Public Enlightenment E-Dividend Unified Licensing Model Non-Interest Products Transaction Cost Analysis Demutualization 5 CAPITAL MARKET PROJECT MANAGEMENT TEAM (CMPMT)

Advanced Mainstreaming the Master Plan National Savings Strategy (NSS) Literacy Week “ “ 2016 Initiatives Technical and Law review committees have already been set up and have commenced work Technical Committees Law Review Committees National Savings Strategy Chaired by Mr. Michael Oyebola Promote new listings Ongoing Unified Licensing Model Build Capacity for Derivatives Market-wide Technology Infrastructure Chaired by Mr. Ade Bajomo Define Minimum Technology Chaired by Mrs. Toyin Sanni Demutualization (NSE) Law review New Listings Chaired by Mr. Jalo-Waziri 6 Warehouse Receipt Bill Chaired by Dr. Babatunde Ajibade, SAN Literacy Week Standards and Shared Services ISA Chaired by Chief Anthony Idigbe, SAN To review other related bills and laws Reviewing laws including FRCN Act CAMA Chaired by Mr. A. B. Mahmoud, SAN Reviews other laws CAPITAL MARKET PROJECT MANAGEMENT TEAM (CMPMT)

CAMMIC Next Steps Continued high-level engagements and advocacy Presentation of the Master Plan to the Federal Executive Council Continued engagement with the National Assembly (pending visit to the President of the Senate) Providing strategic guidance to the Technical and Law Review Committees 7 CAPITAL MARKET PROJECT MANAGEMENT TEAM (CMPMT)

Conclusion Now that greater national ownership of the Master Plan has been largely achieved, the capital market community must be rededicated to meeting and exceeding the targets in the Plan The enthusiasm of members to participate in the implementation is very commendable and should be sustained CAMMIC, via its secretariat, is constantly open to new ideas 8 CAPITAL MARKET PROJECT MANAGEMENT TEAM (CMPMT)