The Securities and Exchange Commission,says has protection of investors in the capital market remains its top priority .

Executive Commission Operations of the SEC, Mr. Dayo Obisan, disclosed this when he received a delegation from the Securities and Exchange Commission Zimbabwe in Abuja, Monday.

According to him, the commission has a robust rule making process that is meant to take care of current issues as well as create an enabling environment for innovation to thrive in the capital market.

He explained that the development will aid the stimulation of growth in the economy, attract more investors to the market as well as ensure that investors are protected.

The commission,he said, has a dual mandate to regulate and develop the capital market in Nigeria, stating that both roles are very delicate in a bid to ensure that the market is attractive to investors.

He added:“They are both delicate roles because if you focus more on regulation, development suffers, and if development suffers growth is stifled. And if growth is stifled it is just a matter of time and the market will be at the receiving end.
“If you focus more on development on the other hand, things have potential of going haywire and you could just be running a market that is not co-ordinated and price transparency and investor protection will suffer. Those are the things we have sworn to do by the provision of the law that created us.

He disclosed that the National Assembly is currently in the process of amending the Investments and Securities Act 2007 to make it in tune in current realities.
“We are in the process of amending our enabling law and it has reached an advanced stage in the National Assembly. There is need to review the law because a lot has happened since the law came into effect in 2007. The essence is to capture all new developments that have taken place in the market within the period. Since the last review in 2007 a lot has happened like Covid-19, technology has taken a bolder stand. Even within the market there are a lot of other innovative instruments that have come which the law at that time did not envisage. Again, there is nothing cast in stone and we have to keep evolving to ensure we are adequately backed by the relevant sections of the law to enable us carry out our functions.
“The issue of transfer of assets was not as aggressive as it is now, we did not even have so much Automated Teller Machines at the time, but that is not the case today. A lot of things are now being done digitally and the plan did not envisage all those. There are some other activities and laws that impact on the capital market and we need to keep looking at our regulations to avoid a disconnect. We need to constantly evolve.

He stated that it was the desire of the Commission to be in tune with current realities that also necessitated the review of the capital market master plan which came into effect in 2014.

“The plan came into effect in 2014 and was meant to run till 2025. But now we are half way through and we saw the need to amend it. This is because in 2014 our focus was different, fintech was not this bold, crypto currencies and virtual assets were not this prominent.

“Fintech is not a walk in the park, we need to understand what we want to regulate, it is a constant phase and we need to keep updating our knowledge to be able to regulate properly. The regulator has to be a step ahead and that was why we created a Division on Innovation since 2018. The tech penetration in Nigeria is growing and the regulator needs to be abreast with the trend and that is a sort of change we need to be able to accommodate” he added.

Speaking, the Head Corporate Finance Zimbabwe SEC, Mr Kundai Msemburi said the delegation decided to visit SEC Nigeria in a bid to exchange ideas and boost regulatory efforts.

“We are here to interact with SEC Nigeria to find out how the Commission deals with issues of regulation. In Zimbabwe we have had issues of some crypto exchanges collapsing and we are here to interact in a bid to make our markets better.
“We are keen to see how the bigger markets operate and see how best to get a grip on the regulation of our market. We know that investor education is very important in any market” he stated

The Securities and Exchange Commission, SEC, has warned investors on the activities of unregistered investments crowdfunding platforms.

The commission,in a statement,also said operators of unregistered crowdfunding platforms would be fined N1 million and N10,000 for every day the violation continues.

Crowdfunding is the process of raising funds to finance a project or business from the public through an online platform.

The commission said that it has “Observed with concern the fraudulent activities of some unregistered investment crowdfunding platforms and hereby, strongly advises the investing public against making investment(s) with or through any crowdfunding platform not registered with the commission.”

“Recognition of the potentials and importance of crowdfunding platforms and the need to protect investors through effective regulation, had in January 2021 published its crowdfunding rules and requested well-intending crowdfunding platforms to register with the Commission and comply with the Rules by June 30, 2021.

“The general public and operators of unregistered crowdfunding platforms, should know that operating any crowdfunding platform that is not registered by the commission is illegal and may lead to prosecution of such operators and loss of investment by their clients.”

The Securities and Exchange Commission says it has been implementing measures aimed at encouraging more listings by creating new rules and amending existing ones, improving general review processes, continuing engagements with issuers, advisers and other critical stakeholders.

Mr. Lamido Yuguda, the Director General of the SEC, stated this recently at the Nigeria Exchange Limited’s CEO Roundtable held in Lagos.

He disclosed that the Commission and the Nigerian Exchange (NGX) Limited have moved to make the processes involved in listing more efficient and cost effective by streamlining the approval process between the SEC and the NGX.

According to him, last year, the Commission partnered the Nigeria Employers Consultative Association, NECA to inaugurate the Securities Issuers Forum (SIF) which was aimed at providing an opportunity for Issuers to engage directly with regulators on pertinent regulatory issues.

He said, “let me reiterate that the SEC is continually focused on increasing the visibility and attractiveness of our market, and will continue to focus on building and sustaining a fair, transparent and efficient capital market.

“The Commission will also continue to embrace the ease-of-doing-business principle by simplifying its processes and enhancing time-to-market through the elimination of superfluous requirements that lead to inordinate delays in capital raising and other capital market operations. This is particularly important so that the market be deepened further and provide avenue for hitherto inadmissible entities to be eligible for listing”.

He said the theme “Creating the enabling ecosystem for accessing capital from the Nigerian capital markets, resonates with the mandate of the Securities and Exchange Commission of developing and regulating the market while protecting investors.

He stated that the demutualization of the Nigerian Stock Exchange (NSE), which led to the emergence of the current NGX Group has brought with it a renewed focus on expanding the market, by consolidating on the successes achieved through the traditional methods of capital raising while working with important stakeholders to introduce new sources of financing.

“The Commission welcomes the sound initiatives of NGX for continued engagement with experts to share their perspectives on changes that would lead to the much desired expansion of the market. This effort would not have come at a better time than now when economies are just beginning to face the devastating economic reality of the Ukraine and Russia crisis, which reared its head, just as nations were still grappling with the health and economic challenges posed by the Coronavirus Pandemic.

“You may be aware that the Commission is in the implementation phase of a comprehensive market and institutional reform program – the Capital Market Masterplan that is intended to reposition the Nigerian Capital Market to be globally competitive. The Commission has successfully completed a comprehensive review of the Masterplan. The reviewed plan is expected to guide further development of the capital market so as to attract more funds for economic growth and development” he stated.

The Commission, the SEC DG said, is also making concerted efforts to ensure the repeal of the Investments and Securities Act (ISA) 2007 and the passage of a new Investments and Securities Bill into law. This is to align the law with current realities and global trends in capital market regulation, including growing changes in market practices, processes and products.

“We have consistently focussed on the creation of an ecosystem in which governments, entrepreneurs and other issuers can efficiently access capital. Stakeholders must however look further to introduce more products, leveraging on the emerging trend of financial technology” he added.

The Security and Exchange Commission,SEC,has sought the cooperation of relevant stakeholders in its desire to help bridge the infrastructure gap in the country.

Director General of the SEC, Mr. Lamido Yuguda,who stated this during a meeting with the new executives of the Chartered Institute of Stockbrokers in Abuja, weekend,said the capital market is capable of attracting finance that would assist the nation bridge the current infrastructure deficiency.

According to him:”We have huge infrastructural deficit in the country like insufficient power, lack of good roads among others. We want our country to have good infrastructure and I know this is possible with the help of the capital market and other stakeholders. It requires adequate planning and financing and we can achieve it as a nation. The capital market through the private sector can fund road construction while government focuses on other issues”.

He said,for the capital market to attain full potentials, all stakeholders need to ensure they carry out their functions with integrity and fairness in a bid to restore investor confidence.

He commended the new leadership of CIS and assured them of the support of the Management of the Commission for a successful tenure.

He acknowledged CIS as a key partner in the Commission’s regulation of the market and assured that the SEC would continue to provide the needed support.

He said:”On behalf of the board and staff. We will give you all possible co-operation you desire to make your job easy.We are here to support this market and make it the market we all desire”.

He stated that derivatives trading has commenced for people who want to manage their risk adding that the SEC is working to increase the literacy of Nigerians so they can take better decisions.

“The future for this country is bright and we have the young population to push it. We can have a much better standard of living than we have now and we hope you will continue to give a lot to the market.We are committed to any initiative that will further spur the growth of the capital market. We also have a review of the ISA Bill pending at the National Assembly and that bill has a lot that will revitalize this market”he added.

In his remarks, President of CIS, Mr. Oluwole Adeosun commended the SEC for the relationship that exists between the Commission and the Institute and thanked the Management for always supporting the CIS.

He said:”You have shown this in your actions since you came into office and we appreciate you for all your efforts and we pray that investors benefit greatly from their investments in the capital market. Thank you for all your support to the CIS Bill”

Former President of CIS, Mr. Olatunde Amolegbe thanked the DG for the efforts the Management has been making to support the CIS, adding that the Institute has been able to function effectively due to the support of the SEC.

He assured that the CIS bill which is current before the National Assembly will get to the final ending and assented to, adding that the bill will stand as a testimony of the quality of leadership that the SEC has brought to this market.

The Federal Government has said it would strengthen the Securities and Exchange Commission to reposition the Nigeria’s capital market to be at par with its peers globally.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed made the commitment in Abuja,when she received the Revised Nigerian Capital Market Master Plan (2021-2025).

The plan was submitted to the Minister by the Capital Market Master Plan Implementation Council led Director-General of SEC, Lamido Yuguda and other top officials of the Commission .

Speaking,the minister said the review of the Capital Market Masterplan underscores the fact that capital market growth resonates with the current administration’s unwavering commitment to deepening and re-positioning the country’s financial markets as a key anchor to achieving a private sector led development of the economy as encapsulated in the National Development Plan objectives.

She said her ministry of finance has supported the Capital Market Master Plan implementation efforts since inception, adding that the Master Plan, represents the collective aspirations of the capital market community which is focused on driving initiatives geared towards growing and deepening the market.

She said this initiatives are being implemented with the ultimate goal of accelerating the emergence of Nigeria as a top 20 global economy by the year 2025.

She commended the Securities and Exchange Commission, Capital Market Masterplan Implementation Committee and other stakeholders for the laudable accomplishments so far recorded in the Master Plan implementation journey especially in the areas of dematerialization of share certificates, e- Dividend mandate, facilitation of access to alternative investments like Sukuk and Specialized Funds, review of CAMA and ongoing review of the ISA, demutualization of the Nigeria Stock Exchange, enhancing the commodities eco-system, design of a National Savings Strategy among others.

She added:“Our capital market is growing and evolving. To sustain this growth and eventually transform to a world class capital market, transparency and investor confidence is key.Investor confidence will accelerate the growth of our market and increase both domestic and foreign investor participation. To this end, we will continue to support and strengthen the regulator to effectively do its job of regulating and developing the capital market.

“I see the capital market as an important driver of our economic growth objectives and we will continue to support efforts to position our market where it deserves to be – a capital market that will broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerate wealth creation and wealth distribution, provide capital to small and medium scale enterprises, and catalyze housing finance.

“As you chart the course for the next phase of the Capital Market Master Plan’s implementation, I assure you of this administration’s support and look forward to working with you and other stakeholders in the financial market to realize the plan’s outcomes.”

In his remarks,the SEC DG,said through the implementation of the 10-year Nigeria Capital Market Master Plan (2015 – 2025), the Commission and other stakeholders have recorded significant milestones over the years.

Yuguda listed some of them to include full dematerialization of certificates, direct cash settlement, recapitalization of CMOs, E-Dividend Mandate Management System, National Savings Strategy to grow domestic risk capital formation, the Roadmap on Enhancing Commodities Trading Ecosystem, Establishment of the West African Securities Regulators Association (WASRA) to encourage integration of capital markets in West Africa, among others.

Yuguda said the Master Plan document recommends a periodic review of the assumptions, goals and objectives of the Plan to better align it with current realities and innovations in the global financial system.

As part of the review, he said the Commission embarked on a comprehensive review of the Plan, driven by PriceWaterHouseCoopers with funding support from Financial Sector Deepening Africa (FSDA).

The main objective of reviewing the Master Plan, he noted, is to produce an updated version of the document primarily to engage stakeholders on the current level of market development and opportunities for further capital growth; review and update the assumptions and vision of the CMMP and develop targets for the various thematic areas of the CMMP.

Other objectives of the review are to introduce a Strategy Map and Key Performance Indicators for the CMMP and use the Balanced Scorecard Approach for performance measurement; align existing and derive new initiatives based on targets and strategic objectives; develop an implementation plan for initiatives with clear milestones, deliverables, timelines, resource requirements, dependencies, and identify challenges, opportunities and risks associated with the CMMP implementation and recommend ways of effective and more efficient implementation.

He said:“The comprehensive review of the Master Plan is now complete and a Revised Capital Market Master Plan has been produced.The revised Plan has incorporated the views and aspirations of stakeholders in our market as well as best practices globally to produce a well-articulated strategic plan for the next four years.

“The revised Capital Market Master Plan is designed to chart the strategic position and future direction of the capital markets, while providing both the SEC and market participants clarity on the vision of the capital market and the road map required to facilitate a conducive business environment to encourage innovation, investment, growth and expansion of economic and employment opportunities in our country.

The Securities and Exchange Commission has sought stakeholders cooperation in its desire to help bridge the infrastructure gap in the country.

Director General of the SEC, Mr. Lamido Yuguda,who stated this during a meeting with the new executives of the Chartered Institute of Stockbrokers in Abuja, said the capital market is capable of attracting finance that would aid the nation bridge the current infrastructure deficiency.

He said:”We have huge infrastructural deficit in the country like insufficient power, lack of good roads among others. We want our country to have good infrastructure and I know this is possible with the help of the capital market and other stakeholders. It requires adequate planning and financing and we can achieve it as a nation. The capital market through the private sector can fund road construction while government focuses on other issues”.

According to him, for the capital market to attain full potentials, all stakeholders need to ensure they carry out their functions with integrity and fairness in a bid to restore investor confidence.

He lauded the new leadership of CIS and assured them of the support of the management of the Commission for a successful tenure.

He acknowledged CIS as a key partner in the Commission’s regulation of the market and assured that the SEC would continue to provide the needed support.

He said:”On behalf of the Board and staff. We will give you all possible co-operation you desire to make your job easy.We are here to support this market and make it the market we all desire”.

He stated that derivatives trading has commenced for people who want to manage their risk, adding that the SEC is working to increase the literacy of Nigerians so they can take better decisions.

“The future for this country is bright and we have the young population to push it. We can have a much better standard of living than we have now and we hope you will continue to give a lot to the market.We are committed to any initiative that will further spur the growth of the capital market. We also have a review of the ISA Bill pending at the National Assembly and that bill has a lot that will revitalize this market”he added.

Speaking , President of CIS, Mr. Oluwole Adeosun commended the SEC for the relationship that exists between the Commission and the Institute and thanked the management for always supporting the CIS.

Former President of CIS, Mr. Olatunde Amolegbe thanked the DG for the efforts the Management has been making to support the CIS, adding that the Institute has been able to function effectively due to the support of the SEC.

He assured that the CIS bill which is current before the National Assembly will get to the final ending and assented to, adding that the bill will stand as a testimony of the quality of leadership that the SEC has brought to this market.

Director General of the Securities and Exchange Commission Mr. Lamido Yuguda,has emphasized the need for serious attention to be paid to the development of a credible and stable capital market.

He added that the development was necessary for any country to be among the most economically advanced ones in the world

He spoke at the First Nigeria Employers Summit organized by the Nigeria Employers Consultative Association in Abuja, where he maintained that such credibility and stability are not guaranteed by market mechanisms alone, but regulation too.

According to him,the commission brings significant regulations to the capital market and has over the years, continued to put in place clear and consistently applied regulatory frameworks to reduce regulatory and operational impediments and engender the smooth functioning of the market.

He added:“As the apex regulator of the Nigerian capital market, the SEC has executed several initiatives to build a collaborative regulatory environment for enterprise competitiveness, job creation and national development. Through its ten-year Capital Market Master Plan (2015-2025), which serves as the primary roadmap for the development of the Nigerian capital market, the Commission has mapped out strategies to build a capital market that is the largest on the continent of Africa and one of the world’s deepest by 2025. The Masterplan’s implementation has been admitted as the 246th programme and project in the recently approved National Development Plan 2021-2025 (NDP2515033).

“The Commission continues to enhance its
regulatory framework through the issuance of Rules to keep pace with market trends. Recent ones include rules on Investment-based Crowdfunding, which created an enabling environment for capital raising by start-ups and on Annual Renewal of Registration of Capital Market Operators to ensure only fit and proper persons operate in the Nigerian Capital Market”.

He said the commission has continued to strive to fulfill its mandate of protecting investors and creating an enabling environment for market operations and has remained consistent in its mandate of ensuring that the market provides an important channel of financing for the real sector to drive economic growth; allocate risk appropriately; support financial stability and smoothen transmission of monetary policy.

He however noted that the capital market is making efforts to do more in the areas of provision of long-term funds to develop infrastructure for the country and support developmental projects, canvassing the need to further deepen the Nigerian capital market for it to contribute the required long-term capital that Nigeria needs for business investment, infrastructure and other innovative financing.

“The gains of capital market development will be macroeconomic development, lower transaction cost, greater liquidity, improved productivity and infrastructure development. The development of the capital market will facilitate a housing finance revolution. It will facilitate improved allocation of capital and provide small, medium and large companies access to the market to raise funds; facilitate foreign inflows of capital; raise productivity growth and lower unemployment. Capital market development is a spur for growth; improved living standards and efficiency.

“The impact of these efforts will be superior economic performance of the Nigerian economy” he added.

Yuguda stated that since its formation in 1957, NECA has earned a reputation as a viable platform for interaction between private sector employers, government, labour and other relevant stakeholders. We at the Securities and Exchange Commission, identify with NECA’s commitment and drive towards promoting a favourable environment for businesses to thrive and contribute maximally to national development.