Business News

UK to boost Nigeria’s capital market through Mobilist programme

United Kingdom

The United Kingdom (UK) Government said that it is committed to supporting Nigeria’s capital market development through its Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme.

According to a press statement from the NGX, the UK said Nigeria’s capital market has the potential to play a crucial role in achieving the country’s economic objectives, including the transition to clean energy solutions and to meet the Sustainable Development Goals (SDGs).

The Mobilist programme aims to facilitate this by mobilizing institutional capital through innovative listed product structures.

British Deputy High Commissioner, Jonny Baxter, while delivering his remarks at the event, said that 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’s focus on stimulating the creation of innovative listed products can make a unique and impactful contribution to achieving these objectives,” he said.

Barriers hindering public listings

The Chairman, NGX, Ahonsi, Unuigbe, highlighted the need for addressing barriers hindering public listings through collaborative discussions.

Unuigbe noted that the discussions are crucial as they 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. Some of these obstacles are significant such as regulatory challenges, high listing costs, and market volatility.

He added, “An enhanced and efficient listing process will democratise access to capital, nurturing a vibrant entrepreneurial ecosystem, particularly businesses dedicated to the achievement of Sustainable Development Goals (SDGs), can flourish.”

Financing sustainable development

Mobilist Programme Lead at the FCDO, Ross Ferguson, said that Mobilist is the expression of the UK’s conviction that public markets have a leading role to play in financing sustainable development by mobilising private capital to flow where it is needed most – to firms tackling development challenges and the climate transition.

“We are committed to deepening our relationships in the Nigerian market as we seek to identify businesses and SDG-aligned assets that need our support,” Ferguson said

 The Ag CEO of NGX, Jude Chiemeka, who emphasized the impact of the partnership with Mobilist, noted that its 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 today are poised to yield actionable insights on how we can collectively catalyse economic growth through the capital market. 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,” he said.

What you should know

Mobilist is a UK government programme that supports investment solutions that help deliver the climate transition and the United Nation’s Global Goals in developing economies.

MOBILIST focuses on mobilising institutional capital to spur new scalable and replicable financial products.

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