The United Kingdom Government has committed to supporting Nigeria in developing its capital markets. The UK views its Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) program as a key collaboration platform with Nigeria’s financial sector.
The UK believes that Nigeria’s capital market can significantly contribute to achieving the country’s economic goals, including transitioning to clean energy solutions. However, Nigeria needs around $10 billion annually to meet the Sustainable Development Goals (SDGs) by 2030. This was highlighted on Tuesday at two MOBILIST events hosted by the Nigerian Exchange Limited (NGX) and the British Deputy High Commission (BDHC) in Lagos.
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The UK emphasized its dedication to working with Nigeria to mobilize private capital on a large scale. The Lagos events brought together stakeholders from the finance community, including the Securities and Exchange Commission (SEC) and the pension fund industry, to discuss overcoming barriers to investment in the SDGs via public markets.
These events followed the visit of former UK Foreign Secretary James Cleverly to Nigeria last year, during which he participated in launching the partnership between MOBILIST and NGX. This partnership aims to increase investment in the SDGs through new investment structures listed on the exchange.
MOBILIST offers investment capital in the form of equity and technical assistance to overcome barriers and facilitate the listing of pioneering products. This initiative mobilizes institutional capital to address development and climate transition challenges. MOBILIST also provides extensive research and policy advocacy support to improve the environment for issuers, investors, and intermediaries.
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According to the Organisation for Economic Co-operation and Development (OECD), Africa requires an additional $194 billion annually to achieve the SDGs by 2030. The OECD states that closing this financing gap is impossible without large-scale private investment and enhanced collaboration among capital market stakeholders, development banks, and policymakers.
British Deputy High Commissioner Jonny Baxter remarked, “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 entire economy by enabling companies to raise capital to fund their expansion, which in turn helps deliver crucial development, job opportunities, and improved incomes.”
MOBILIST Programme Lead at the FCDO, Ross Ferguson, stated, “MOBILIST is the expression of the UK’s conviction that public markets have an underutilized but potentially critical role in financing sustainable development at scale by mobilizing 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. We are committed to deepening our relationships in the Nigerian market as we seek to help position Nigeria’s capital markets at the forefront of these efforts.”
NGX Chairman Ahonsi Unuigbe highlighted the importance of addressing barriers to public listings through collaborative discussions. He emphasized, “The discussions we have today are crucial as we address barriers hindering public listings and explore actionable solutions. By overcoming these obstacles, we can unlock the full potential of our capital market, enabling more businesses to access the funding they need to grow and thrive.”
Acting CEO of NGX, Jude Chiemeka, emphasized the impact of the partnership with MOBILIST, stating, “Our partnership with MOBILIST is geared towards advancing market efficiency, sustainability reporting, and integrating Environmental, Social, and Governance (ESG) principles. This event represents a significant milestone in our ongoing efforts to enhance the performance and deepening of Nigeria’s capital market by promoting sustainable capital flows and enhancing listing diversity.”
The discussions from the events are expected to yield actionable insights on catalyzing economic growth through the capital market, unlocking new opportunities for funding businesses, fostering entrepreneurship, and driving sustainable development across Nigeria.
