- Outlines Roadmap To Support Economy
The Securities and Exchange Commission (SEC), on Thursday said it has so far approved nine new issuances valued at N1.228tr, reflecting an increased level of confidence in the market.
Addressing news men on decisions at the second quarterly meeting of the Capital Market Committee (CMC), comprising key stakeholders in the sector, Director-General of the SEC Nigeria, Dr. Emomotimi Agama, also noted the significant, strong and sustainable 111.08% growth in Net Asset Value (NAV) of Registered Mutual Funds to ₦3.335tr, further confirming investor confidence.
Dr. Agama said this was expected given that the Commission has, so far, demonstrated its commitment to protecting investors, as evidenced by the recent conviction of a Ponzi scheme operator, reinforcing its stance against market offenders. The commission, he reiterated, remains unrelenting in its efforts at combating Ponzi schemes.
Speaking on the unclaimed dividends debacle that has plague the Nigerian market for decades, Agama noted that the SEC is partnering stakeholders to reduce the volume, and is optimistic about reporting some progress to the Senate Committee within the next six months.
He added that the SEC has also improved its complaints management mechanism through the implementation of a Complaints Management Framework and the establishment of an Investor Protection Fund to restore investor confidence.
To manage systemic risks, he disclosed that the commission had mandated Capital Market Operators to prepare and submit their enterprise risk management frameworks and annual risk profiles to the Commission, while also collaborating with other financial sector regulators and agencies in efforts to assist Nigeria in exiting the FATF grey list.
The DG also restated the commission’s unwavering commitment to the advancement and prosperity of the Nigerian capital market and the economy in general, stressing the need for public and private sector collaboration to sustain the economy during these challenging times.
He expressed optimism about unlocking the full potential of the capital market in alignment with the national agenda, stressing that the capital market must mobilize financing and facilitate the transfer of purchasing power from surplus to deficit sectors to reinforce Nigeria’s position as Africa’s leading economy adding that the meeting also provided an opportunity for stakeholders to discuss the challenges and opportunities facing the capital market and to share ideas on how to improve the regulatory framework.
He acknowledged the “efforts of CMC sub-committees since 2002 in tirelessly working to enhance market efficiency, create rules and standards and develop new products, strengthening the regulatory framework, prioritizing investor protection as well as developing a master plan among others.
“Recognizing the dynamic nature of the capital market, we plan to restructure the CMC to optimize its role in driving market growth and development and unlocking its full potential to better serve the needs of our industry,” he added.
While urging CMOs to ensure compliance with the Nigerian Sanctions Alert System and to enhance reporting on Politically Exposed Persons (PEPs) and Suspicious Transaction Reports (STRs), the SEC DG also informed members of initiatives aimed at ensuring that the rulemaking process of the Commission becomes faster and more efficient.
“These include defragmenting the rules with a view of codifying the rules into a comprehensive rule book. Also, the Commission is presently updating rules on digital assets, has put in place guidelines for the banking recapitalisation exercise, as well as come up with guidelines for on boarding Virtual Assets Service Providers.
“We are also embarking on other initiatives to safeguard investors in private bonds, noting that the Commission is reviewing its relevant rules and will soon release rules on private markets” he stated.
Agama expressed the determination of the Commission to continue encouraging companies to list, while urging the exchanges to take steps to attract new listings to align with the government’s $1 trillion economy target.
“We believe that strengthening regulatory bodies, enhancing enforcement, and adopting international best practices are essential to market efficiency, transparency and global competitiveness. Also, promoting good corporate governance, encouraging private sector investment, developing alternative assets, and incentivising corporate bond issuance are crucial to market growth and development. Additionally, more companies should be encouraged to list on the exchange to improve market making and liquidity” he added.
Agama noted that the fight against cybercrimes remains a priority, with the Nigerian government implementing policies and establishing a cybersecurity committee within the capital market to manage and disseminate critical information, with the Commission at the vanguard of the initiatives. These initiatives underscore the SEC’s commitment to fostering a secure and robust capital market environment in Nigeria.
