The Securities and Ex  change Commission, SEC, ha signed a Memorandum of Understanding, MOU, with its Moroccan counterpart, Autorite Marocaine Du Marche Des Capitaux, AMMC, to boost cooperation between both regulators and the capital marker operation.

President Muhammadu Buhari (r) welcoming the King of Morocco, Mohammed VI, as he Officially visited the President at the Presidential Villa Abuja. Photo by Abayomi ADESHIDA 02/12/2016

The MoU, which was signed on the sidelines of the Nigerian- Moroccan bilateral talks marked with the visit of His Majesty, King Mohammed VI of Morocco, will serve as a platform for regulatory cooperation and information sharing between the two capital market regulators.

According to SEC in a statement, the partnership is the first step towards achieving an effective cross border market policing between the two jurisdictions and enhanced market development through leveraging mutual comparative advantages. The bilateral discussions covered a wide range of issues aimed towards deepening the mutual relationship between the two countries. These included agriculture, aviation, immigration, banking, capital markets and the extractive industries, among others.

The Nigerian delegation was led by President Mohamcountry while Ms. Nezha Hayat, CEO, AMMC represented the Kingdom of Morocco. It is interesting to note that as members of the International Organization of Securities Commissions (IOSCO) which holds cooperation and integration as a cardinal objective, Nigeria and Morocco ordinarily has a platform to enter into bilateral agreements such as this as provided in the 38 IOSCO principles.

The Commission stated that the involvement of the governments of both countries at the highest level is a mark of the high premium placed on the importance of the capital market to the economic growth and prosperity of the two nations. For Nigeria, this is a welcome development as it presents an opportunity to leverage the progress achieved in the Moroccan market to enhance especially the delivery of a few of the objectives of the 10 – year Capital Market Master plan.

This for example is especially as relates to deepening the asset management space of the market, an area of comparative advantage for Morocco.

The Commission further stated that  the signing of the MOU signals a strengthened cooperation framework between Nigeria and Morocco in areas of common interests as it will encourage cross investments in the respective capital markets. It will also engender mutual recognition of regulations related to public offerings and professional certifications to facilitate dual listings and mobility of capital and labor between the two markets.