The United Kingdom has reaffirmed its commitment to supporting Nigeria in the development of its capital markets through the Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme.
This initiative aims to bolster Nigeria’s financial sector, emphasizing the role of the capital market in achieving the country’s economic objectives, including a transition to clean energy solutions. To meet the Sustainable Development Goals (SDGs) by 2030, Nigeria requires approximately $10 billion annually in financing.
This announcement was made on Tuesday during two MOBILIST events hosted by the Nigerian Exchange Limited (NGX) and the British Deputy High Commission (BDHC) in Lagos.
These events brought together key stakeholders from the finance community, including the Securities and Exchange Commission (SEC) and the pension fund industry, to discuss strategies for increasing investment in the SDGs through public markets.
The UK’s commitment follows the visit of former UK Foreign Secretary James Cleverly to Nigeria last year, where he launched the partnership between MOBILIST and NGX. This collaboration seeks to catalyse greater investment in the SDGs by introducing new investment structures listed on the exchange.
MOBILIST provides equity investment capital and technical assistance to overcome barriers and enable the listing of innovative products that can attract institutional capital on a large scale.
The programme also offers extensive research and policy advocacy support to address obstacles and improve the environment for issuers, investors, and intermediaries.
The Organisation for Economic Co-operation and Development (OECD) has highlighted that Africa needs an additional $194 billion annually to achieve the SDGs by 2030.
Achieving this will require mobilising private investment at scale and enhanced collaboration among capital market stakeholders, multilateral development banks, development finance institutions, and policymakers.
British Deputy High Commissioner Jonny Baxter, in his remarks at the event, 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 entire economy by enabling companies to raise capital to fund their expansion, which in turn helps deliver crucial development, job opportunities, and improved incomes.”
NGX Chairman Ahonsi Unuigbe emphasized the importance of addressing barriers to public listings through collaborative efforts.
“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,” he said.
Unuigbe noted significant obstacles such as regulatory challenges, high listing costs, and market volatility, adding that an enhanced and efficient listing process will democratize access to capital, fostering a vibrant entrepreneurial ecosystem.
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MOBILIST Programme Lead at the FCDO, Ross Ferguson, highlighted the UK’s belief in the critical role of public markets in financing sustainable development.
“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,” he said.
NGX Acting CEO Jude Chiemeka underscored the impact of the partnership with MOBILIST, focusing on market efficiency, sustainability reporting, and integrating Environmental, Social, and Governance (ESG) principles.
“By harnessing the potential of our capital market, we can unlock new opportunities for funding businesses, fostering entrepreneurship, and ultimately driving sustainable development across Nigeria,” Chiemeka stated.
