By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) and the Nigerian Exchange (NGX) Limited have been assured by the Senate of capital market-driven reforms.
Speaking during a visit to the exchange on Tuesday, the Chairman of the Senate Committee on Capital Markets and Institutions, Mr Osita Izunaso, the National Assembly was ready to champion legislative reforms that would propel the Nigerian capital market to new heights.
According to him, the pivotal role of the capital market in fostering economic prosperity can never be underestimated, urging stakeholders to work together towards achieving common objectives.
He also noted that beyond legislative efforts, there was the need for aggressive public enlightenment on the benefits of investing in the stock market, stressing the importance of these legislative interventions in incentivising companies to list on the bourse.
“We are going to look at all the legislative frameworks in the National Assembly waiting for amendment 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.
“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 individual companies and the economy at large.
“Our visit to NGX today is a testament to our dedication to advancing the growth agenda of the Nigerian capital market.
“We would continue to collaborate closely with market stakeholders to address existing challenges and unlock growth opportunities,” he said during the visit.
In his remarks, the Director General of SEC, Mr Lamido Yuguda, 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, he 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 asset under management (AUM) is 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.”
On his part, the chairman of NGX Group Plc, Mr Umaru Kwairanga, emphasized the need for collaborative efforts among the government, regulatory bodies, and market participants to unlock the market’s full potential.
Also, the chief executive of NGX Group, Mr Temi Popoola, echoed Mr Kwairanga’s sentiments, emphasising 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.
