The Director General of the Securities and Exchange Commission, Mr. Lamido Yuguda, said that for any country to be among the most economically advanced in the concert of nations, serious attention must be paid to the development of a credible and stable capital market. , which is an essential prerequisite for the proper functioning of the economy.
Yuguda, who said this at the first Nigeria Employers’ Summit organized by the Nigerian Employers’ Consultative Association in Abuja, noted that this credibility and stability is not guaranteed only by market mechanisms, but also by regulations.
The SEC boss said the Commission brings important regulations to the capital market and has over the years continued to put in place clear and consistently enforced regulatory frameworks to reduce regulatory and operational hurdles and ensure the proper functioning of the market.
He said, “As the supreme regulator of the Nigerian capital market, the SEC has executed several initiatives to create a collaborative regulatory environment for business competitiveness, job creation and national development. As part of its Ten-Year Capital Market Master Plan (2015-2025), which serves as the main roadmap for the development of the Nigerian capital market, the Commission has developed strategies to build a capital market that is the most large on the African continent. and one of the deepest in the world by 2025. The implementation of the master plan was admitted as the 246th program and project in the recently approved National Development Plan 2021-2025 (NDP2515033).
“The Commission continues to improve its regulatory framework by issuing rules to keep pace with market trends. The most recent include rules on investment-based crowdfunding, which have created an enabling environment for start-ups to raise capital, and on the annual renewal of the registration of capital market operators to ensure that only fit and suitable persons operate in the Nigerian capital market.
The SEC CEO said the Commission continued to strive to fulfill its mandate to protect investors and create an enabling environment for market operations and remained consistent in its mandate to ensure that the market provide an important financing channel for the real sector to stimulate economic growth; allocate risks appropriately; supporting financial stability and facilitating the transmission of monetary policy.
He, however, noted that the capital market was trying to do more in the areas of providing long-term funds to develop the country’s infrastructure and support development projects, stressing the need to further deepen the market. Nigerian capital to provide the necessary resources. long-term capital that Nigeria needs for business investment, infrastructure and other innovative financing.
“The gains from capital market development will be macroeconomic development, lower transaction costs, greater liquidity, improved productivity and infrastructure development. The development of the capital market will facilitate a revolution in housing finance. It will facilitate better capital allocation and provide small, medium and large enterprises with market access to raise funds; facilitate the inflow of foreign capital; increase productivity growth and reduce unemployment. Capital market development is a stimulus for growth; improved standard of living and efficiency.
“The impact of these efforts will be superior economic performance of the Nigerian economy,” he added.
Yuguda said that Since its inception in 1957, NECA has established a reputation as a viable platform for interaction between private sector employers, government, trade unions and other relevant stakeholders. At the Securities and Exchange Commission, we identify with NECA’s commitment and strive to promote an enabling environment for businesses to thrive and make maximum contributions to national development.
According to him, the theme of this year’s summit “The Private Sector – An Engine for National Development” could not have come at a better time than now, as nations struggle to manage their economies amid the devastating effects of Covid-19 and the collapse global political developments.
He said. “I should also mention that the topic ‘Creating a Collaborative Regulatory Environment for Business Competitiveness, Job Creation and National Development’ is a tacit reminder that building a viable economic system requires cooperation and commitment. of all relevant stakeholders operating within a sound regulatory environment.
“I am therefore delighted to speak on a subject consistent with our professional commitments at the Securities and Exchange Commission, especially as the Commission emphasizes the development and regulation of a dynamic, fair, transparent and efficient capital market. which will contribute to the economic development of the country.