The Senate Committee on Capital Market has assured Nigerians that it is ready to work with the Securities and Exchange Commission, SEC, to develop and bring back investors’ confidence in the Capital Market.
The Chairman of the Committee, Senator Ibikunle Amosun who stated this at an Interactive Session with SEC in Abuja, on Tuesday explained that the National assembly, would ensure the amendment and passage of relevant laws.
“The senate is not unaware of the challenges facing the growth of the Nigerian capital market. It is our desire as a committee to support you with unnecessary legislation to develop the Nigerian capital market.”
“Therefore, we are ready to work to bring back investors confidence to the capital market, by creating laws so that investments can start which was stagnant since 2007. Companies and Allied Matters Act (CAMA) we will also look into it remove obsolete information,” he stated.
Senator Amosun also urged stakeholders in the capital market to meaningfully contribute their quotas in the development of the market to strengthen the confidence of existing investors and that of the new ones that are coming in.
“This committee in assuring you of its readiness to advice and to ensure cooperation, wavers on Tax holidays, if and where necessary. There is equally the need to revive the commodity exchange and make the market robust and functional. We should try to introduce new products and also raise the existing ones and make it worthy like other capital market,” he added.
The Acting Director General, SEC, Ms. Mary Uduk while thanking the Government for their support, said the Commission required adequate support from relevant stakeholders and huge investment in capacity building.
According to her, SEC is working towards developing a vibrant commodity ecosystem as well as developing the derivatives and FinTech space.
Uduk listed some areas where the government could help grow the market space;
“Also, government’s recent efforts to reduce internal borrowing to be replaced with external borrowing for lowered interest rates is expected to release funds to the private sector and engender capital market growth.
“In addition, conscious efforts by the government to privatize enterprises and seek long term capital through the capital market will go a long way in deepening the Nigerian capital market, raising financial inclusion and wealth distribution” she said.
The Acting DG also explained the need to mainstream the Capital Market Master Plan into the national economic development policy.
According to Uduk, it will improve Nigeria’s competitiveness, promote a savings culture, improve market depth and liquidity and catalyze economic growth, while also stating that this will be beneficial not just to the capital market but also to the entire economy.
“More importantly, since the capital market over time serves as the barometer of any economy, the successful implementation of the Nigerian Capital Market Master Plan will aid the actualization of the Nation’s economic development aspirations.
“The Commission also needs to continue to encourage efficient market through disclosure and investor protection, while making efforts at diversifying the products currently available,” she added.