By Dipo Olowookere
The Director-General of the Securities and Exchange Commission (SEC), Mr Lamido Yuguda, has disclosed that efforts would be made to ensure that the Nigerian capital market would not be used by unscrupulous elements to finance terrorism, launder money and others.
In an interview over the weekend in Abuja, he said the apex regulatory agency for the country’s capital market would apply zero tolerance to money laundering, terrorism and proliferation financing violations.
“We must all ensure that we continue with the implementation of the revised Capital Market Master Plan (CMMP), alongside the implementation of other initiatives. Over the years, we have relied on the support of CAMMIC, Technical Committees and Working Groups in the implementation of the Master Plan.
“In line with the RCMMP, we will review and align the structure and scope of work of the various technical committees and working groups to ensure seamless implementation of the plan and continue to rely on the stakeholders,” he stated.
The SEC boss assured that in protecting investors and creating an enabling environment for fit-and-proper capital market operators to thrive, the commission will prioritize its planned increase of on-site inspections and improved collaboration with Trade Groups and other relevant stakeholders.
In the interview, he also expressed the firm belief that the Nigerian capital market, being an organized and specialized financial market that drives capital mobilization through domestic savings and foreign capital inflows, was well positioned for the realization of the objectives of the 2023 budget of fiscal consolidation and Transition.
Mr Yuguda disclosed that the Nigerian equities market ended 2022 on a positive note as the NGX All-Share Index (ASI), which started at 42,716.40 points, ended at 2022 at 51,251.06 points, indicating a 19.98 per cent growth.
As for the FMDQ Securities Exchange, despite the headwinds in the economy, it recorded a marginal increase in total market turnover to N199.88 trillion from N198.93 trillion in 2021.
He attributed the headwinds to high inflationary pressure, which forced the Central Bank of Nigeria (CBN) to push interest rates higher.
“Last year, the Nigerian economy faced several challenges, including worsening inflation, rising unemployment, huge fiscal deficit, insecurity, and floods.
“Additionally, oil theft and volatility in oil prices led to difficulties in foreign exchange management. In an attempt to tame inflation, the CBN raised the monetary policy rate four times during the year, increasing the cost of financing for businesses and dampening corporate activity and performance.
“Despite these challenges, the Nigerian economy grew by 3.52 per cent (year-on-year) in real terms, driven mainly by the services sector, which recorded a growth of 5.69 per cent and contributed 56.27 per cent to the aggregate GDP,” he stated.
Mr Yuguda disclosed that for the safety and security of the capital market and to address the deficiencies in Nigeria’s Mutual Evaluation Report (MER), the commission had issued new AML/CFT regulations and guidelines, which mandate CMOs to comply with stringent reporting obligations, such as application of RBS by reporting entities, screening of clients against United Nation’s Sanction List before onboarding, and continuous monitoring of clients among others.
He commended the capital market community for their unwavering commitment, which has played a crucial role in the commission’s efforts to build a robust capital market, adding that their contributions and support have been instrumental to driving progress in the capital market and the country.
