…CBN set to hold rates as two-day MPC meeting begins
The Minister of Finance, Mr. Wale Edun, has emphasised the crucial role of the capital market in achieving the nation’s ambitious goal of becoming a one-trillion-dollar economy.
Speaking at the Capital Market Committee (CMC) meeting, the minister highlighted the market’s transformation since 2015.
He said that with improvements in governance structures, new products and platforms, a stronger regulatory environment, and growing investor participation, the capital market is capable of delivering Nigeria’s proposed one trillion dollar economy.
Edun was represented by the Minister of State for Finance, Dr Doris Uzoka-Anite.
According to the minister, the implementation of the Capital Market Master Plan (2015-2025) had been instrumental in increasing the market’s contribution to the national economy, developing a sophisticated market structure, and improving competitiveness.
Edun said the revised plan prioritises digitalisation, innovation, sustainability, inclusion, and capital formation, aligning with the broader economic reform agenda.
He said that the passage of the new act modernises the legal and regulatory framework, streamlines enforcement mechanisms, and provides clarity on emerging areas such as digital assets and crowdfunding.
On the challenges and opportunities inherent in the Act, the minister said it would help deepen market participation, and to ensure regulatory coordination remains tight.
The minister noted that the government is committed to creating an enabling environment for private sector innovation to flourish within a fair and transparent environment.
He said the market is expected to contribute to the economy, serving not only for capital raising but also as a vehicle for wealth creation, economic inclusion, and long-term national resilience.
He explained that with SEC undertaking regulatory reforms, including joining the GBMC Network of IOSCO in promoting and implementing ISSB Standards, among others, the domestic economy recorded the fastest GDP growth in about a decade in 2024, driven by a strong fourth quarter and improved fiscal position.
Earlier in his speech, the Director-General of SEC, Dr Emomotimi Agama, emphasised the Commission’s commitment to regulatory reforms and capital market growth.
According to him, the enactment of the Investment and Securities Act (ISA) 2025 marks the beginning of a transformative new era for the capital market.
Agama highlighted the commission’s efforts to deepen engagement with stakeholders, ensure widespread dissemination and understanding of the new law, and drive innovation and compliance.
He also emphasised the importance of restoring investor confidence, bringing timely relief to aggrieved investors, and creating a platform for broad-based participation of Nigerians in wealth creation.
He noted that the Commission has constituted an implementation team to thoroughly engage with every provision of the ISA 2025 and set up a dedicated sensitisation team to deepen public understanding of the new law.
He said a podcast series had also been launched to simplify the ISA 2025 and make it accessible to all Nigerians.
Agama highlighted the Nigerian capital market’s impressive performance in 2024, with the NGX All-Share Index increasing by 37.65 per cent and market capitalisation growing by 53.39 per cent.
He also noted the commission’s efforts to enhance regulatory efficiency, promote market integrity, and protect investors.
He emphasised the importance of financial inclusion and investor education, citing the commission’s initiatives to empower women, youth, and grassroots communities.
He also highlighted the commission’s commitment to technology-driven solutions, including the launch of an e-survey to assess emerging technology adoption in the Nigerian capital market.
Agama emphasised the commission’s commitment to fostering growth, transparency, and sustainability in the capital market and looked forward to fruitful deliberations at the meeting.
The highlight of the CMC meeting was the unveiling of the ISA Act 2025 by the minister.
…CBN set to hold rate as two-day MPC meeting begins
The Central Bank of Nigeria (CBN) 300th meeting of its Monetary Policy Committee (MPC) will on Tuesday likely maintain its key rate at 27.5per cent for a second successive meeting to temper price pressures.
Inflation at 23.7per cent remains elevated and strains on the naira have only recently abated after an initial selloff in April caused by a slump in the price of oil — its main export.
There may be “some room for the CBN to cut rates” in the second half of the year as disinflation is expected, said JPMorgan Chase & Co.’s Gbolahan Taiwo in a client note.
It will be the Nigeria Central Bank first rate-setting meeting since the US imposed a 10% universal tariff and slapped China — Africa’s largest trading partner — with a 145% levy before reducing it to 30% for 90 days.
The International Monetary Fund (IMF) in April downgraded its 2025 economic growth forecasts for Nigeria to 3 percent, citing “lower external demand, subdued commodity prices, and tighter financial conditions.”
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