By Aduragbemi Omiyale
The Head of Investment Supervision at the National Pension Commission (PenCom), Mr Ibrahim Kangiwa, has disclosed that the agency was working tirelessly to draft guidelines for securities lending for Pension Fund Administrators (PFAs) in the country.
He made this disclosure at the Nigerian Exchange (NGX) Limited Securities Lending workshop held on Wednesday, August 9, 2023.
He said these regulations and processes being developed by the organisation in collaboration with other stakeholders should be unveiled by the end of the year.
According to him, the enactment of the Business Facilitation Act in 2023 empowered PenCom to advance guidelines aimed at facilitating securities lending.
Recall that on February 14, 2023, former President Muhammadu Buhari signed the Business Facilitation (Miscellaneous Provisions) Act, 2022. This legislative milestone led to crucial amendments being made to Section 89 (2) of the Pension Reform Act, allowing pension assets to qualify for securities lending, subject to guidelines issued by PenCom.
At the virtual seminar yesterday themed Business Facilitation Act 2023 as a catalyst for deepening Securities lending in Nigeria, the Divisional Head of Capital Markets at the NGX, Mr Jude Chiemeka, emphasised that these amendments created new possibilities within Nigeria’s securities landscape, particularly for institutional investors like the PFAs.
“In light of this, NGX and PENCOM will forge a close collaboration to deepen this space for the benefit of Retirement Savings Account (RSA) holders and the pension industry at large,” he said.
Mr Chiemeka also underlined NGX’s ongoing commitment to partnering with all relevant stakeholders in the market to enhance securities lending, noting that, “This collaborative effort aims to foster the growth and development of the capital market in Nigeria and across the African continent.”
Delivering his goodwill remarks, the Director of Registration, Exchanges, Market Infrastructure, and Innovation at the Securities and Exchange Commission (SEC), Mr Abdulkadri Abass, stressed that his organisation remains resolute in upholding a market that is just, organised, and efficient, prioritising the safeguarding of investor interests.
Mr Abass, represented by a Senior Manager at SEC, Ms Franca Ebube, noted that the Business Facilitation Act, which permits PFAs to partake in securities lending, would undoubtedly deepen the market and increase liquidity.
Business Post reports that the webinar on Wednesday was put together in partnership with the Central Securities Clearing System (CSCS) Plc, Cardinalstone Partners, Stanbic IBTC Nominees, and the Pension Fund Operators Association of Nigeria (PenOps).
