Senate Assures SEC, NGX of Capital Market Reforms

Salamatu Ejembi, Lagos

Last updated Feb 7, 2024

The Senate Committee on Capital Market and Institutions has reassured capital market operators of its dedication to advance the growth agenda of the Nigerian capital market.

The committee said it would continue to collaborate closely with market stakeholders to address existing challenges and unlock opportunities for growth.

The Chairman, Senate Committee on Capital Market and Institutions, Osita Izunaso gave the assurance when he led a delegation to visit the Nigerian Exchange Group (NGX Group) on Tuesday.

Izunaso emphasised the pivotal role of the capital market in fostering economic prosperity and urged stakeholders to work together to achieve common objectives.

Hesaid: “We are going to look at all the legislative frameworks in the National Assembly waiting for amendments in one form or the other. We are going to review the Investment and Securities bill before us, the CIS bill, as well as to revisit the Private Companies Conversion and Listings (PCCL) Bill that has been in the National Assembly since 2014 and other legislation that would drive the market.”

He stressed the importance of these legislative interventions in incentivising companies to list on the Exchange.

Beyond legislative efforts, Izunaso stated that there was also the need for aggressive public enlightenment on the benefits of investing in the stock market.

“I use this opportunity to call on companies in Nigeria to get listed on the stock exchange to ensure transparency and mitigate issues of tax evasion. It would also ensure the growth of the individual companies and the economy at large, ” he stated.

The Director General of the Securities and Exchange Commission (SEC), Lamido Yuguda also assured NGX Group of strengthening its regulatory framework aimed at supporting the Exchange and deepening the market.

Speaking about efforts to motivate more private investors into the market, Yuguda said “we are doing everything that we can to get regulations that give confidence to both domestic and foreign investors. For example, we have the policy on custody of all CIS products in our market, whether bilateral or public and we have seen the CIS sector responding positively to this development. The assets under management are growing and investors are better advised to invest through the CIS because they have experienced portfolio managers who are best equipped to manage their investments.”

The Group Chairman of NGX, Umaru Kwairanga, in his remarks emphasized the need for collaborative efforts between government, regulatory bodies, and market participants to unlock the market’s full potential.

For his part, the Group Chief Executive Officer of NGX Group, Temi Popoola, echoed Kwairanga’s sentiments, emphasizing the importance of legislative interventions to encourage dollar-denominated transactions and the role of the capital market in revenue mobilization and tax compliance.

He also highlighted the importance of pension reforms and the introduction of derivatives as instruments to mitigate market volatility.