The Security and Exchange Commission (SEC) has received a $400,000 grant from the Africa Development Bank (AfDB) for the development of the country’s capital market.

The fund will be channelled towards strengthening the risk-based supervision framework, regulation of derivatives and green bonds, and building capacity for green finance.

In a statement on Friday, the bank explained that the grant will be sourced from the Capital Markets Development Trust Fund, a multi-donor fund administered by the Bank.

The fund is expected to simulate capital market development to unlock financial resources for productive sector investments, infrastructure development and private sector growth.

Speaking on the development, Lamido Yuguda, the Director-General of SEC said the “collaboration further underscores the mutual goal to grow markets and create viable avenues for sustainable economic development for Nigeria and the region.”

Also, Lamina Barrow, a senior director of the bank in Nigeria said the grant is coming at a time when countries are recovering from the impact of the deadly COVID-19 pandemic.

He added that the grant will boost domestic resource mobilisation efforts.

“At a time when countries are striving to build back better from the ravages of the COVID-19 pandemic, improvement of the enabling regulatory and supervision framework will boost domestic resource mobilisation efforts and leverage private sector contributions to achieve a greener, more environmentally sustainable and inclusive post-pandemic recovery,” Mr. Barrow said.

AfDB explained that the grant is aligned with the priorities of the Bank’s Country Strategy for Nigeria, that envisages measures to stimulate capital market development to unlock financial resources for productive sector investments, infrastructure development and private sector growth.