The Director-General, Securities and Exchange Commission (SEC), Mr Lamido Yuguda, says the Securities Issuers Forum (SIF) will help the development of the capital market and the economy.

Yuguda,who said this in his opening address during the virtual inauguration of the SIF by SEC in collaboration with Nigeria Employers Consultative Association, added that the SIF had the potential to act as a bridge between the SEC and issuers of securities and as well create a platform for issuers to engage the commission for more listings.

According to him, the SIF would improve the contributions of issuers to the development of the capital market, as key stakeholders deepen and broaden the market and ultimately contribute to Nigeria’s economic development.

He said SEC will be better positioned to engage issuers on capital raising opportunities to facilitate increased participation in the capital market with the establishment of the SIF.

He added that development of new products to meet funding needs and addressing issues relating to compliance with regulatory requirements would be achieved as well.

“The idea of a forum for issuers of securities is not novel as such fora exist in other parts of the world to cater to the interests of issuers of securities in the capital market. In Europe, the European issuers acts as the voice of issuers of securities, representing over 8,000 companies and national associations of issuers of securities.

“In the United States of America and South Africa, the American Securities Association, and the Debt Issuers Association, respectively serve as the associations for issuers of securities.

“In Nigeria, the Nigeria Employers Consultative Association (NECA), the umbrella body for over 3,000 members, seeks to protect interests and rights of businesses and ultimately influence policymaking. By encouraging the establishment of the SIF in collaboration with NECA, SEC hopes to bridge the gap that exists between the expectations of issuers and the requirements of the regulator.

“While forums for issuers are not very common in the African region, they have proven to be veritable tools for capital market advancement in the UK, Europe and Asia. The inauguration of the SIF today, thus marks an important move by Nigeria to reap the benefits associated with its establishment,” he said.

Yuguda added that itv would benefit members and promote sound corporate governance and ethical conduct among members.

He said the commission had encouraged the creation of associations and trade groups for other capital market stakeholders, such as shareholders and capital market operators.

“Therefore, the SIF is expected to function seamlessly and attract members in line with precedence already established,” he said.

Speaking,the Director-General of NECA, Dr Timothy Olawale, expressed appreciation to SEC for inaugurating the forum,athat the event was important to the business community, especially coming during the current economic constraints being faced globally.

Olawale said that regulators were expected to be business facilitators and expressed excitement that the SEC was working hard at facilitating the ease of doing business and bridge the gaps and aid companies to meet expectations of compliance.

He said: “This Forum is a good one by SEC, as it will help us to do what is needful and right. We are very excited about it. It is commendable and we recommend this form of partnership to others. The forum will serve as a medium of regular engagement between SEC and issuers of securities to address challenges, improve the business environment and enhance the contribution of the capital market to the growth of the Nigerian economy”

The Securities and Exchange Commission is set to hold a webinar in conjunction with the Federal Ministry of Mines andSteel Development as part of its commitments to boost  the commodities trading ecosystem and attract more foreign exchange to the country,

The webinar with the theme, “Financing the Solid Minerals Sector through the Capital Market and the Critical Role of Commodity Exchanges” will hold on Thursday July 15,2021 .

The SEC noted that Nigeria is currently developing its solid minerals sector to diversify its economy and Government’s revenue sources.

This is in line with the commission’s decade Capital Market Master Plan (2015-2025) which has as one of its major goals, the development of a vibrant Commodities Trading Ecosystem. Targeted commodities include non-agriculture commodities such as products of mining activities.

The agency said the ecosystem can foster inclusive mining prosperity by efficiently mobilizing medium to long term funding for solid minerals projects, linking commodities to industries, creating jobs, unlocking the economic potentials of mining communities, and ultimately engendering economic development, through better access to market, price transparency and standardization.

“The webinar is open to mining companies, artisanal and small-scale mining operators, Federal and State Government officials, regulators, industry bodies, academics, asset managers, pension fund administrators, legal and advisory service providers, stakeholders in the capital market and the solid minerals sector” the SEC added.

Non Interest Capital Market  has the prospect of attracting a large pool of untapped investors base who have apathy to conventional instruments, to participate in capital market as well as the existing investors who seek to diversify their portfolio, Securities and Exchange Commission has said .

Director General of the SEC, Mr. Lamido Yuguda,who  stated this at a Joint IFSB/SEC Nigeria Virtual Seminar on Investor Protection and Transparency in Islamic Capital Markets,disclosed that the level of activity in non-Interest (Islamic) capital market that is currently being witnessed in Nigeria affirms the overwhelming acceptance of its products by the investing public.

According to him,recently, the market witnessed the entrance of institutions offering Islamic capital market services/products as well as issuance   of Federal Government into the Sukuk market with latest issuance of Federal Government-Sukuk oversubscribed by   over 400%.

He explained that the development  further buttressed the need to enhance the SEC’s investor protection mechanism in order to ensure transparency in the market.

He emphasized that investors’ protection is the principal plank of regulation and transparency, a building block that enhances the growth of the capital market adding that the knowledge gap that often exists between the market Players and investors demand for more transparency, and the risks faced by investors requires reasonable level of protection by the regulator in order to build confidence and trust in the market.

He said: “Capital markets all over the world thrives on trust, it is believed that enhancement of investor protection and increased transparency will have a multiplier effect on investments and sustainable growth of the economy.

Yuguda said a framework for complaint management was put in place to fast-track and streamline the dispute resolution process in the market with a view to  fostering and securing investors’ confidence in the market.

“It is worthy to also note that the 10-year strategic Masterplan (2015-2025) for the Capital Market includes a section on NICM that recommends various initiatives aimed at developing this sector. While some of these activities and programmes have been implemented, a lot more work is ongoing to unlock the full potential of Non-interest Capital Market.

“It is a well-known fact that the pandemic has brought about a new normal to the global economies – including the Nigerian Capital Market, hence this Seminar couldn’t have come at a better time. The need to promote and increase awareness of investor protection mechanism and transparency requirements are considered essential to engendering investor confidence and trust in the financial system, which is crucial for the growth and development of the market”.

On the  NICM, he said the provision of two levels of shariah review and certification is meant to further serve as added measure towards investor protection. This is coupled with the requirement for continuous review\certification of the shariah expert throughout the tenor of the transaction.

He said, “We are happy to note that Non-Interest financial activities are developing exponentially across all sectors of the Nigerian Financial System. Indeed, we expect that the Market will soon witness substantial investment from the pension industry which will be a game changer that would spur more issuances of NICM  by corporates and other categories of issuers”.

Yuguda said the SEC Nigeria has not relented in its efforts to discharge its primary mandate of regulating and developing the Nigerian capital market; protection of investors has been one of our key focus. Numerous initiatives being implemented in this regard include the establishment of the National Investor Protection Fund (NIPF) aimed at compensating investors who incur losses arising from the insolvency, bankruptcy or negligence of a capital market operator; the e-dividend registration and payment system, dematerialization and direct cash settlement system all aimed at ensuring an efficient process of securities transaction and elimination/minimizing cases of unclaimed dividend.

The Securities and Exchange Commission has dispelled insinuations  that MBA Capital and Trading Ltd is a registered capital market operator with the Commission.

This was contained in a statement signed by the Management of the SEC in Abuja Monday.

 The regulatory body said:“The attention of the Securities and Exchange Commission (“the Commission”) has been drawn to a publication in one of the National Daily Newspapers, in which a victim of an alleged scam perpetrated by MBA Capital and Trading, Misan Sagay reportedly stated that he had verified “on-line” and ascertained that the company was registered with the Commission.

“The Commission said  that MBA Capital and Trading has never been registered by the Commission.

It reminded  the general public that by virtue of Section 38 (1) of the Investments and Securities Act (ISA) 2007, only persons and institutions registered with the Commission are permitted to engage in capital market activities.

It advised  investing public to seek clarification as may be required through  its established channels of communication on investment products advertised through conventional or online mediums.

It added that a list  of registered capital market operators is available on the Commission’s website (http://sec.gov.ng/cmos/

The Securities and Exchange Commission(SEC),plans  to collaborate with the Ministry of Mines and Steel Development to address some of the challenges faced by the solid minerals sector through the Commodities Exchanges.

 Director- General of the SEC, Lamido Yuguda,who during a meeting with the Minister of State for Solid Mineral, Dr. Uchechukwu Ogah, in Abuja weekend,explained  that the core function of a Commodity Exchange is to create markets by providing a setting where multiple buyers and sellers can trade commodity-linked contracts thereby reducing the costs associated with finding a buyer or seller to whom to transact.

 Other benefits of a Commodity Exchange include, improved quality, standardization, traceability (tracking the source of every solid mineral), price discovery, price risk management, accepted dispute resolution procedures and facilitating provision of commodity financing.

He said in the last couple of years however, Nigeria has been confronted by significant threats which include, structural fiscal challenges underlined by heavy reliance on crude oil for revenue, youth unemployment and increasing insecurity. This worrisome situation he said, has been exacerbated by the Covid-19 pandemic.

He added: “In bid to address these challenges, the Federal Government is aggressively growing its agricultural and solid minerals sectors as a catalyst for economic growth and diversification. To complement government efforts and deepen the capital market, the Commission set up a market-wide technical committee to undertake a holistic assessment of the existing framework of the Nigeria Commodity Ecosystem.

“The Committee grouped its recommendations in phases: in the first phase, the objective is to ensure food sufficiency and security, price discovery and market development while in the second phase, focus would include developing strong trades in export commodities. The third phase should see the introduction of solid minerals, energy and derivatives while the last phase should be geared towards ensuring strong international presence in the local exchanges.

“In furtherance of this objective, the Commission is actively promoting the development of the commodities market especially in areas of Nigeria’s comparative advantage such as solid minerals and agriculture.

Yuguda stated that the Commission is currently implementing the 10 year Nigerian capital market master plan which was launched in 2015. It aims to: position the capital market to play a pivotal role in the emergence of Nigeria as a top 20 global economy; have a highly competitive market that engenders best practice, innovation and efficiency; and operate a capital market that combines all the elements needed to actualize Nigeria’s developmental aspirations.

The Minister of State in the Ministry, Dr. Uchechukwu Ogah, described solid minerals as a resource  of the future and expressed the belief that in the near future it could assist greatly in the development of the economy of the country.

He said, “ We are moving away from oil because we believe that mineral is a thing of the future and the President has done a lot in initiating projects that are helping us to  explore some of the few minerals that are of high value in the country.

“Apart from that, the President has equally initiated what we call Presidential Artisanal Gold Mining initiative which led to the presentation of the first locally mined artisanal miner’s gold bar to Mr. President. The proposal is that we are looking at a good policy where these golds would be explored, produced and if possible refined in Nigeria so that we can use it to shore-up our reserve and to ensure that the depreciation on our Naira is controlled when we have a good number of raw resources to shore-up our reserve.

The Securities and Exchange Commission has adopted the Nigerian Sustainable Finance Principles (NSFP) as developed by the Financial Services Regulation Coordinating Committee (FSRCC) for the capital market.

This was contained in a statement signed by Efe Ebelo, the commission’s Head, Corporate Communications, and made available to journalists in Abuja, weekend.

The regulator stated that the objectives of the SEC guidelines on NSFP are to: stimulate a resilient, competitive and sustainable capital market that promotes economic development and improves the quality of life for all;  Improve corporate governance practices to ensure that the participants in the capital market operate in a transparent and sustainable manner; nurture an environment that facilitates job creation and diversity, women empowerment, human rights protection, access to affordable capital market products by the economically less privileged and contribute to efforts aimed at reducing global warming and other environmental footprints resulting from our activities and those of our stakeholders.

The commission said the SEC guidelines and approach are principles based and therefore do not prescribe specific implementation requirements but however noted that these principles should be applied by each regulated entity in a manner that fits individual mandates, core values, and enterprise risk management framework.

It noted that reporting enhances companies’ accountability for the effects of their social impacts which in turn fosters social responsibility in organizations and therefore enhances trust, while facilitating shared values on which to build a more cohesive society, adding that “consequently, regulated entities must report regularly on the extent to which they apply these principles. Consequently, the adoption of financial sustainability principles and its reporting are vital steps towards achieving a sustainable global economy”.

The commission said  the Nigerian capital market plays a major role in the industrialization and economic development of Nigeria.

It,however,  said the pursuance of these key objectives involves activities that give rise to a range of challenges including air and water pollution, climate change, water and natural resource scarcity, environmental degradation, growing population density and poverty.

“These externalities and other social impacts affect not only businesses but also the communities where they operate. Sustainable finance principles are guidelines developed to help address the impact of these externalities, ensure long term economic growth while safeguarding the environment and society.

“The primary objective is to achieve a balance in the pursuit of economic prosperity while ensuring environmental protection and social development. To this end, the principles help create an economic, environmental and social organization that ensures and improves economic efficiency, prosperity, and sustained economic competitiveness while contributing to protecting and restoring ecological systems, enhancing cultural diversity and social well-being. In the financial services industry, there is an increasing realization that sustainable practices have a potential to save costs, grow revenues, reduce reputational and legal risks, as well as drive the development of human capital and improve access to finance.

In implementing these principles, regulated entities are expected to: Establish the standards for their organization and be committed to it: They are to set the pace for the integration of the Principles into their organizational culture, such that the Board and Management are committed to sustainable finance and ensuring successful implementation. The entity’s commitment to the Principles should be demonstrated through policies and decisions and also ensure their supervised organizations do the same.

They are also to establish sustainable operations approach by having a set of procedures that detail how Environmental, Social and Governance (ESG) and related issues are managed and aligned with existing internal decision-making processes.

Lastly, they are to ensure proper reporting: Regulated entities should ensure that appropriate reports are prepared detailing their progress and performance regarding their commitment to ESG guidelines.

Regulated Entities include Capital Market Operators (CMOs), Trade Groups, Self-Regulated Organizations (SROs) and Capital Trade Points.

The SEC stated that the guidelines on sustainable financial principles set out broad principles and recommendations for better practice in sustainable finance.

“Since investments in assets, especially long term assets directly impact a nation’s development, it is crucial to get the allocation of financial capital right. The capital market operators’ role as intermediaries means they are critical channels through which pricing, regulation and their interaction with society, can direct financial capital to more or less sustainable economic activity.

“These principles, which should be adopted by regulated entities, are essentially a preferred benchmark on which their ESG practices must target. The opportunities that this path is opening, for both growth and value, make these principles relevant to all mainstream financial institutions. Finally, it is hoped that these principles will raise awareness and trigger the implementation of sustainable finance ideals among regulated entities and help facilitate the financing of the transition path to a sustainable economy,”  the commission  added.