By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) has said it was working hard with other agencies to improve Nigeria’s policy environment so as to make it more attractive to investors.
According to Mr Lamido Yuguda (Director-General), efforts are being made to position capital market as a viable platform to obtain long-term funding for infrastructure development.
He suggested that working with a think tank group like the Nigerian Economic Summit Group could accelerate the development of policies that will drive economic growth.
Our collective economic power exceeds the government’s and in many cases, the capital market is funding the government.
Savings can be used to create economic value, which will increase your standard of living. This is achievable because you get financial returns as well as utility from your investments, according to the DG when a team of NESG officials visited him in Abuja.
The organisation was present at the commissions’ office to seek cooperation towards the development the economy, which Mr Yuguda was delighted about.
We are pleased to announce that we have begun discussions with the NESG regarding the capital markets. There is something that needs to be done in this country.
The SEC DG stated that the policy environment in many areas is not conducive to capital return to investors. We are working hard to address this.
He said that the success of telecommunications companies is because everyone is paying for the services.
We all pay for services. Nobody is getting them for free. We say no when we use our roads. In other countries, people pay to maintain their roads. They are happy because the roads are great.
Collaboration with a group such as NESG is essential. Mr Yuguda stated that investors will be more willing to invest if we can make things right.
In his remarks, Mr Laoye jaiyeola, Chief Executive Officer at NESG, expressed concern that the banking sector is being stressed by borrowers and urged governments and corporates organizations to look towards capital markets for their funding needs.
Mr Jaiyeola stated, “Transactions can be restructured for raising bonds, bills and all those things that will fund whatever it’s that needs to be funded without going through any banks.”
If the securities market is to take the bull by its horn, we will be in perpetual debt as Nation. That will not help us. This is why we say “Let’s re-engage”. How can we get an Investments and Securities Act to ensure that Nigeria receives the priority funding it needs for development and that we can then fund Nigeria over the long-term?
We cannot depend on the short-term funding. Instead, we must move towards the long-term. He said that they are passionate about it and need to raise funds to provide the necessary development funding for Nigeria.
In response to the request for a robust ISA the Executive Commissioner for Legal and Enforcement, SEC, Mr Reginald Karawusa stated that they are making efforts towards this goal.
He claims that the law was signed in 2007 by the late President Musa Yardua, making it 15 years old. He stated that SEC had established an industry-wide commission to rework and added that several market experts helped with its revision, as well as input from stakeholders.
The 8th assembly received a draft. The Bill was not passed because the assembly left. The capital market will benefit greatly from the passing of the bill.
New provisions will allow the SEC to be more effective in regulating to make it a top-notch regulator and increase the number products.
The Bill also includes a provision that allows us to join the National Savings Scheme. If passed, this will be another major gatechanger. He stated that any support from the NESG would be appreciated.