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THE NIGERIAN CAPITAL MARKET IN 2014 Although much of the recent news on the Nigerian Stock market has been less than encouraging, with the falling oil price having a negative impact on stock prices, there are several achievements over the past year that are truly worthy of celebration. In April 2014, Septlat Petroleum Development Company, an indigenous oil and gas exploration company, completed its dual listing on the main board of the Nigerian Stock Exchange (“NSE”) as well as the London Stock Exchange (“LSE”). This dual listing led to the recent signing of a capital markets agreement to strengthen cooperation and promote mutual development between the LSE and the NSE and has become an inspiring benchmark for other indigenous companies. The shares were listed on the NSE at =N=576.00 per share, and at 210 pence per share on the LSE’s main board. Following the first supranational Naira bond issuance by the International Finance Corporation in 2013, the African Development Bank (“AfDB”) established its own =N=160 billion local currency Medium Term Note Programme. As its first issuance under the Programme, the AfDB offered a 7-year, semi-annual, fixed rate coupon bearing bond via a book building process which commenced on 20 th June 2014 and closed on 4th July 2014, with settlement taking place on 11th July, 2014. The AfDB successfully raised =N=12.95 billion under this first issuance which saw the introduction of a new instrument into the Nigerian market that was widely accepted by a diverse category of investors such as pension funds, asset managers, and banks. We understand that this issuance marks the AfDB’s third domestic bond issue in Africa, outside of South Africa. On the regulatory side, the Securities and Exchange Commission (“SEC”) issued new rules regulating the registration of foreign collective investment schemes in Nigeria. These new rules continue to generate keen interest among foreign fund managers wishing to offer foreign schemes in Nigeria, and have resulted in the registration by Allan Gray (which is one of South Africa’s largest privately owned investment firms) of a local private equity fund under these new rules. Another regulatory development that is worthy of note is the recent implementation of the five-year exemption of value added tax on stock market transaction fees – which is a welcome development as it will ultimately reduce the cost of transactions for investors, and will encourage investments in the Nigerian Capital Market. Please see further Tax Developments in Nigeria in 2014. The SEC is working on its Capital Market Transformation Plan (2015-2025) which is due to be revealed to the market at the end of November 2014. The intention is to provide Page 1 of 2 long-term plans for the growth of the capital market as well as set out clear strategies for the Nigerian capital market to achieve its full potential. Article written by Christine Sijuwade Page 2 of 2