Capital Market Literacy
MASTER PLAN (CML-MP)
Interim Report
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Outline
Introduction
Terms of Reference
Statement of Overall Objective
Methodology
Review of Global Practices
Review of Local Practice
Summary of Findings
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Needs Analysis
Recommendations
Implementation Plan
Conclusion
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Introduction
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CML-MP |Introduction
 “Literacy” can be defined as a person’s knowledge of a particular subject or field.
The synonyms are articulacy, education, knowledge, learning, proficiency,
refinement and scholarship.
 “Capital Market” can be defined as the Market for raising and trading in long
tenured securities in the country’s financial system.
 “Capital Market Literacy” is therefore, the level of education, learning,
articulacy, proficiency and scholarship of a country’s population about Capital
Market Activities.
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CML-MP |Introduction Contd.
Observations
 Studies have shown that Capital Market Literacy is surprisingly low even in the
advanced economies of the world.
 In Nigeria, illiteracy, amongst other factors, could be said to have contributed to the
crash of Capital Market in 2008/2009.
 In a similar study conducted by EFINA 2012 showed limited knowledge about the
Financial Market generally and its activities in Nigeria.
…To this end, the Securities and Exchange Commission (SEC) set the ball rolling by
Setting up a committee to:
i.
look into literacy in Nigeria capital Market; and
ii.
draw up a ten year Capital Market Literacy Master Plan.
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CML-MP |Introduction Contd.
The project will involve:
Studying
what obtains:
1.Globally
2. locally
Conducting
Needs
Analysis
Making
recommendations
which could
improve the level of
Capital Market
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Terms of Reference
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CML-MP |Terms of Reference
Examine the
current level
of capital
literacy in
Nigeria and
make
recommenda
tions for
ways to
improve on
the quality
and depth of
knowledge in
an effective
and efficient
manner.
Identify and
review the
strengths,
weaknesses,
opportunities
and challenges
of the current
structure of
Nigerian capital
market literacy
programs to
meet the
immediate and
future
developmental
aspirations of
the market and
the national
economy.
Examine
current
policies and
plans for
capital
market
literacy and
recommend
appropriate
strategies in
line with best
practices to
enhance
participation
in the market
and
determine
the reforms;
Suggest
ways that
could be
adopted to
influence a
large
population
of
Nigerians
to make
decisions
towards
investing in
the capital
market.
Consider
any
additional
issue(s)
required to
achieve
the level of
capital
market
literacy
comparabl
e with any
world class
capital
market.
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Statement of Overall Objective
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CML-MP |Statement of Overall
Objective
To develop a framework for continuously building
capacity of all Stakeholders for a wider and more
informed participation in the Nigerian capital
market
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Methodology
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CML-MP |Methodology
Review Financial /Capital Market Literacy initiatives in other jurisdictions.
Review existing capital market literacy initiatives/activities in Nigeria
Identify Capital Market Stakeholders
Identify and analyze the Capital Market Literacy Needs of Stakeholders
Identify relevant programs to meet the needs of stakeholders
Make necessary recommendations
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Review of Global Best Practices
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CML-MP |Review of Global Best
Practices
France
Australia
Kenya
Japan
United
Kingdom
South Africa
USA
Brazil
Rwanda
India
Malaysia
Canada
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Summary of Findings
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CML-MP |Summary of
Findings
Stakeholders
Our study of financial/capital market literacy programs for other
jurisdictions revealed that the following “stakeholders” are
involved in the campaign aimed at improving capital market
literacy:
▫ National Authority (Government policies)
▫ Regulatory bodies
▫ Industry Operators
▫ Foundations and NGOs
▫ Institutional Investors
▫ Professional bodies and
▫ High Net-worth Individuals
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CML-MP |Summary of Findings
Target
• The study also shows that Capital Market Literacy Programs are targeted at the
following:
▫ Various organs of government – The Executive, the Legislative and the
Judiciary.
▫ Students - Primary, Secondary, Colleges and Universities.
▫ Professionals – Lawyers, Accountants, Doctors, Consultants etc.
▫ People planning to retire or already retired.
▫ Employees in the service of Regulators, Operators and government parastatal
and agencies.
▫ Members of professional bodies etc
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CML-MP |Summary of Findings
Implementation
• In addition, Capital Market Literacy programs are designed and implemented in
various ways viz:
▫ In the curriculum of professional bodies, schools and Universities
▫ Workshops, seminars and training programs for operators, regulators and
investors
▫ Exhibitions, road shows and annual public lectures
▫ Television and Radio talk shows
▫ Partnership education arrangements between Associations, Regulators and
Investors
▫ Individuals are also encouraged to research and publish books on finance and
capital market related subjects as a way of deepening the understanding of various
stakeholders in the market
▫ Professional bodies, Associations and other partnerships also publish journals on
financial and capital market related subjects
▫ Postings on websites of Regulatory bodies, professional bodies, Associations,
NGOs, Institutional Investors etc
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Review of Nigeria Current Capital Market
Literacy
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CML-MP | NIGERIA
• Capital Market Literacy in Nigeria cannot be said to be new because it is as old as the
institution of Capital Market.
• Since the financial market crisis of 2008, there have been a growing number of Capital
Market Literacy programs in Nigeria.
• However, capital market literacy programs in the country currently lacks strategic
direction and proper coordination.
• Efforts are being made in addressing capital market literacy as focus had hitherto
being generally on money market literacy.
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CML-MP | NIGERIA
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Securities and Exchanges Commission (SEC), Chartered Institute of Stockbrokers (CIS), Nigerian Stock
Exchange (NSE), the Institute of Capital Market Registrars (ICMR), are the leading players in improving
capital market literacy through the following……
Securities and Exchange Commission (SEC)
• Introduction of capital market studies in the school curriculum (Senior Secondary Schools curriculum and
the university)
• Awareness programs at the six geopolitical zones,
• Capital market awareness campaigns at NYSC orientation camps, National Quiz Competition among
Secondary Schools
Nigeria Stock Exchange
• Organise essays for Secondary and Tertiary Institutions
• Free Investor clinic
Chartered Institute of Stockbrokers (CIS)
• Awareness programme on capital market at NYSC Orientation Camps ( so far only Lagos)
• Training of ICAN inductees on Capital market at the Annual Induction Program, Workshops, Seminars,
conferences and Continuing Professional Education Programs for Capital Market operators
• Free Investor education programme
Institute of Capital Market Registrars (ICMR)
• Professional examination for members, Mandatory Continues training Programmes (MCTP) Workshops,
Seminar, Annual Conferences and induction and investitures lectures
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CML-MP | NIGERIA
Capital Market Literacy Channels
The Capital Market literacy programs are delivered essentially through:
• Printed or published materials
▫ such as flyers, booklets, Comic Strips.
• Town Hall meetings, Mass Media
▫ Television, Radio, print media.
• The use of local languages and drama (Home Video) is gradually coming
on stream.
▫ The SEC, for example, has released three home videos –“Breeze”,
“Easy Money” and “Mutual Benefits”.
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CML-MP | NIGERIA
Identified Stakeholders
The identified stakeholders in the capital market literacy master
plan have been classified to the following:
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CML-MP | NIGERIA
Next Steps
As a next step, a “needs analysis” will need to be conducted
The need analysis involves a survey to be
conducted by a consultant, which will look at the
Target Audience, potential engagement with
capabilities, capabilities needed to engage
effectively, current levels of capabilities and gaps
to be addressed.
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CML-MP | NIGERIA
Programs Identified
Some programs identified include:
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Publishing of books and Journals
Curriculum development for schools at all levels.
Organizing of Workshops Seminars and Annual Public Lectures.
Institutionalizing Quiz competitions for schools.
Television and Radio Talk Shows.
Annual Essay Competition
Special training programs for shareholders Associations
Taking part in trade fairs
Hosting of capital market literacy programs on the website of Regulators, Operators and
institutional investors
Nigerian Capital Market Institute(NCMI)
News papers Advertorials
Handbills
Film Production
Setting up a literacy Monopoly Board
Investment games with emphasis on the capital market
Market outreaches
Wealth and health outreach
Nollywood engagements
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Questions ?