The Securities and Exchange Commission (SEC) has expressed its unwavering commitment to advancing and prospering the Nigerian capital market and the economy at large, in line with President Bola Tinubu’s Renewed Hope Agenda.
Dr. Emomotimi Agama, Director General of the SEC, stated this during the Second Post-CMC briefing held in Lagos on Thursday. He emphasized the need for collaboration between the public and private sectors 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 President Bola Ahmed Tinubu’s Renewed Hope Agenda.
He noted 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. He added that the meeting provided an opportunity for stakeholders to discuss the challenges and opportunities facing the capital market and to share ideas on improving the regulatory framework.
He said, “I wish to acknowledge the tireless efforts of CMC sub-committees since 2002 in enhancing market efficiency, creating rules and standards, developing new products, strengthening the regulatory framework, prioritizing investor protection, and developing a master plan, among other initiatives.
“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, including the approval of nine new issuances totaling ₦1.228 trillion. This reflects 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.
He mentioned that 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.
Dr. Agama reiterated the Commission’s relentless efforts in combating Ponzi schemes.
Regarding 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 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 making the rulemaking process of the Commission faster and more efficient.
“These include defragmenting the rules with a view to codifying them into a comprehensive rulebook. Additionally, the Commission is updating rules on digital assets, establishing guidelines for the banking recapitalization exercise, and developing guidelines for onboarding Virtual Assets Service Providers.
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“We are also embarking on other initiatives to safeguard investors in private bonds. The Commission is reviewing its relevant rules and will soon release new regulations for private markets,” he stated.
Dr. Agama expressed the Commission’s determination to encourage companies to list and urged 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. Promoting good corporate governance, encouraging private sector investment, developing alternative assets, and incentivizing 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.
Dr. Agama noted that the fight against cyber crimes 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 forefront of these initiatives.
These efforts underscore the SEC’s commitment to fostering a secure and robust capital market environment in Nigeria.
