SEC Develops Regulations for a Credible and Stable Capital Market—Yuguda

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By Dipo Olowookere

The Managing Director of the Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, said the agency has continued to develop regulations to make the Nigerian capital market more credible and stable.

According to him, a credible and stable capital market will propel the Nigerian economy from its development status to an advanced category like the United States and others.

Speaking at the first Nigeria Employers Summit organized by the Nigeria Employers Consultative Association (NECA) in Abuja recently, the SEC CEO said efforts were being made to ensure that the national capital market becomes the one of the deepest in the world by 2025 thanks to the capital of 10 years. Market master plan.

He said that is why the commission has continued over the years to put in place clear and consistently enforced regulatory frameworks to reduce regulatory and operational hurdles and ensure the smooth functioning of the market.

“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.

“Through its 10-year capital market master plan (2015-2025), which serves as the main roadmap for the development of the Nigerian capital market, the commission has strategized to build a capital market that is the deepest in Africa and one of the deepest in the world by 2025.

“The implementation of the master plan has been admitted as the 246th program and project in the recently approved National Development Plan 2021-2025 (NDP2515033),” he said.

“The commission continues to improve its regulatory framework by issuing rules to keep pace with market trends.

“Recent ones 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,” Mr. Yuguda said. added.

The CEO said the agency continued to strive to fulfill its mandate of protecting investors and creating an enabling environment for market operations and remained consistent in its mandate to ensure that the market provides an important channel. funding 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 is 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 contribute the requisite 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. The development of the capital market 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.

Mr. 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 SEC, we identify with NECA’s commitment and drive to promote an enabling environment for businesses to thrive and contribute to national development to the maximum,” he said.

According to him, the theme of this year’s summit, The private sector – an engine for national developmentCouldn’t have come at a better time than now, as nations struggle to manage their economies amid the devastating effects of COVID-19 and collapsing global political developments.

“I must also mention that the subject, Create a collaborative regulatory environment for business competitiveness, job creation and national developmentis a tacit reminder that building a viable economic system requires the cooperation and commitment of all relevant stakeholders operating within a sound regulatory environment,” Mr. Yuguda said.

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