Nigeria, Ghana To Push For Capital Market Integration In West Africa

The Securities and Exchange Commission of Nigeria and it’s counterpart in Ghana are pushing for the integration of the capital market within the West African sub-region.

The plan was disclosed by the Director -General of the Securities and Exchange Commission of Ghana, Rev. Daniel Ogbarmey Tetteh when he led his team on a study tour to SEC headquarters in Abuja.

The tour was basically on the successes recorded by Nigeria in the full dematerialization of share certificates in the Nigerian Capital Market.

He was received on behalf of the SEC DG, Lamido Yuguda by the Executive Commissioner, Corporate Services, Mr Ibrahim Boyi.

Boyi congratulated his Ghanaian counterpart for the sound policies and programmes aimed at increasing the depth and breadth of the Ghanaian capital market through the introduction of fixed-income, commodity and small business-focused exchanges.

He recalled that SEC Nigeria signed a Securities Regulation MOU with SEC Ghana in Accra on August 27, 2003 to foster co-operation and ensure orderly, fair and transparent financial markets across its jurisdictions,

The DG reiterated SEC Nigeria’s readiness to consult, cooperate and exchange information to achieve common mission of protecting investors, maintaining fair, orderly, and efficient securities markets that facilitate capital formation;

He commended SEC Ghana for launching its maiden Capital Market Master Plan in May, 2021 to serve as the blueprint for developing the Ghanaian capital market over the next ten years.

He told his guest that the Ghana Masterplan is coming at a time when the SEC Nigeria had just concluded a mid-term review of its 10-year Capital Market Masterplan (2015 – 2025).

The review was necessitated by the need to consolidate on the successes achieved and to incorporate important developments occasioned by the dynamism of the capital market and the global economy.

He said, “We recognise the importance of enhanced coordination and cooperation concerning issues of common regulatory interest in order to nurture market innovation and fair competition as well as to promote efficiency in regulatory oversight within the west African sub region.

“The Commission recently recorded a landmark achievement on approving the first wholly-electronic public offering of equities in 2021.

“The Offer had a combined feature of price discovery through a book-building exercise to Qualified Institutional Investors, and subsequent offer to Retail Investors at the determined price;

“The derivatives market is also coming on stream with potential implications for market depth and liquidity, through the development of risk management products “

The SEC Boss said for the first time in the Nigerian capital market, a total of 21 derivatives contracts were registered on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.

“The SEC Nigeria has achieved quite a lot through careful implementation of sound initiatives.
As you are aware, every change comes with challenges.

“However, we remain focused on consolidating the successes achieved by implementing policies and programmes contained in the capital market masterplan;

“It is instructive to note that the important role played by the Central Securities Clearing System (CSCS) was instrumental to the huge successes recorded in the implementation of the SEC Nigeria’s dematerialization exercise,” he added.

While assuring the SEC Ghana DG of the continued support and cooperation, Yuguda advised them to work closely with important stakeholders such as the Ghana Stock Exchange and the Central Securities Depository Ghana Limited as it implements the sound initiatives in its Masterplan.

In his response at the event, Tetteh said his organisation has been leveraging on the MoU which it signed with Nigeria few years ago to develop the capital market in Ghana.

He said, “We remain committed as we work together to boost our capital markets and push for our integration of the capital market in the sub-region.

“Nigeria and Ghana have what it takes to ensure that the sub-region has a well integrated and functional capital market.”

He said that the integration of the capital market in West Africa is vital as it would assist in raising the much needed funding for development projects for the sub-region particularly in the area of infrastructure.

The SEC Ghana DG said given what has been happening since the outbreak of the COVID-19 pandemic, it has become imperative for capital markets in Africa to create a market capital to raise funds within sub-region for infrastructure challenges.

He told the SEC DG that the Capital Market Masterplan in Ghana is being implemented under four major pillars.

The pillars are improving diversity of investments products and market liquidity, increasing investors base, improving the market infrastructure and market services and improving regulations, investors confidences and enforcement.