The United Kingdom has pledged to boost Nigeria’s capital market, stating that the country requires $10 billion per year to accomplish the SDGs by 2030.
The UK government stated on Tuesday that it is dedicated to assisting Nigeria in developing its vibrant capital market and sees its Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) project as a solid foundation for partnership with Nigeria’s financial sector.
The UK government also stated that Nigeria’s capital market may help accomplish the country’s economic goals, including the desire to transition to renewable energy solutions, but that it would require approximately $10 billion in financing each year to meet the Sustainable Development Goals (SDGs) by 2030.
On Tuesday, at two MOBILIST events held by the Nigerian Exchange Limited (NGX) and the British Deputy High Commission (BDHC) in Lagos, the UK government emphasised its commitment to collaborating with Nigeria to facilitate large-scale private capital mobilisation.
The events in Nigeria’s financial hub drew stakeholders from across the finance community, including representatives from the Securities and Exchange Commission (SEC) and the pension fund industry, to discuss ways to overcome some of the major barriers to increasing SDG investment through public markets.
This week’s events follow former UK Foreign Secretary James Cleverly’s visit to Nigeria last year, where he participated in the introduction of a collaboration between MOBILIST and NGX aimed at catalysing greater investment in the SDGs through new investment structures listed on the exchange.
MOBILIST provides equity-based investment financing as well as technical help to overcome impediments and enable the listing of pioneering products capable of mobilising institutional capital at scale to address the twin issues of development and climate change.
During his remarks at the event, British Deputy High Commissioner Jonny Baxter stated: “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.”
A liquid and well-regulated capital market benefits the overall economy by allowing businesses to raise cash to fund expansion, which in turn contributes to critical development, job creation, and higher earnings. “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 words, Chairman of the NGX, Ahonsi Unuigbe, emphasised the need of eliminating hurdles to public listings through collaborative conversations. According to Unuigbe, “The discussions we have today are critical as we address barriers to public listings and look for actionable solutions.”
By removing these barriers, we can fully realise the potential of our capital market, allowing more businesses to access the money they require to develop and thrive. Some of these barriers are severe, such as regulatory hurdles, high listing costs, and market volatility.”
The MOBILIST Programme Lead at the FCDO, Ross Ferguson, “MOBILIST is the expression of the UK’s conviction that public markets have an underutilised but potentially critical role in financing sustainable development at scale by mobilising private capital to flow where it is needed most – to the firms that are going to contribute most to solving developmental challenges and help deliver a fair and orderly climate transition for Nigeria.”