SEC reiterates commitment to support economy, outline roadmap

Omeiza Bilal

The Securities and Exchange Commission has expressed its unwavering commitment to the advancement and prosperity of the Nigerian capital market and the economy in general in line with President Bola Tinubu’s Renewed Hope Agenda.

Director General of the SEC, Dr. Emomotimi Agama who stated this during the Second Post CMC briefing held in Lagos, Thursday, stressed the need for public and private sector collaboration to sustain the economy during these challenging times.

Dr. Agama expressed optimism about unlocking the full potential of the capital market in alignment with the national agenda and the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration.

He pointed out 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.

According to him, “I wish to acknowledge the tireless 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.

The SEC DG highlighted significant developments in the Nigerian capital market for 2024 to include the approval of nine new issuances totaling ₦1.228 trillion, reflecting increased confidence in the market and a growth in the Net Asset Value (NAV) of Registered Mutual Funds by 111.08% to ₦3.335 trillion, indicating strong and sustainable growth.

The SEC DG said the Commission has demonstrated its commitment to protecting investors, as evidenced by the recent conviction of a Ponzi scheme operator, reinforcing its stance against market offenders. He reiterated the Commission’s unrelenting efforts at combating Ponzi schemes.

Addressing unclaimed dividends, Agama noted that the SEC is collaborating with stakeholders to reduce the volume of unclaimed dividends in Nigeria, aiming to report progress to the Senate Committee within the next six months. He added that the SEC has also improved complaints management through the implementation of the Complaints Management Framework and the establishment of an Investor Protection Fund to restore investor confidence.

To manage systemic risks, he disclosed that the SEC had mandated CMOs 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.

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 onboarding 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 to encourage companies to list and urged 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.