SEC Revises Capital Market Master Plan to Woo Investors

The Securities and Exchange Commission has said it will launch a revised version of the 10-year Capital Market Masterplan in 2022 to reflect the dynamism of the market and developments in financial technology, among others.

Mr Lamido Yuguda, the Director-General, SEC, said in Abuja in a New Year message that the commission would organise a capital market conference, where the launch would be done.

He expressed confidence that the results of the various initiatives implemented would begin to gradually manifest, spurring developments in many aspects of the market.

According to him, as the restrictions of COVID-19 and its variants are eased up, the market will witness renewed confidence expected to introduce fresh investments from domestic and foreign investors.

Yuguda said, “As we expect improvements in both economic and capital market activities, we must remain committed to developing the market in line with the 10-year master plan.

“Some of the key initiatives to be pursued in 2022 are as follows: the repeal of the Investment and Securities Act 2007 and passing of the Investment and Securities Bill 2021 to align the enabling law with the realities and trends in capital market regulation and practice in Nigeria.

“In conjunction with the NASD Platform, provide the necessary incentives and support to attract SMEs to get listed. Already, rules on crowdfunding to encourage new funding sources for the SMEs have been developed.”

He said SEC would continue the enhancement of the existing regulatory framework guiding the operations of the market by keeping pace with the evolving changes in market practices, especially with the advent of fintech and digital assets.

Yuguda said the commission would improve coordination amongst stakeholders, such as the National Assembly, Central Bank of Nigeria, National Pension Commission, Corporate Affairs Commission, National Insurance Commission, Debt Office Management and Federal Inland Revenue Service, to create synergies and further improve upon its effectiveness towards ensuring the realisation of the objectives of the capital market master plan.

He also disclosed that the commission would carry out advocacy efforts to the relevant government agencies, such as the Nigerian National Petroleum Corporation and the Federal Ministry of Petroleum Resources on the listing of shares of the NNPC.

He said policies would be championed to incentivise companies, such as the new Dangote Refinery, to offer their shares to the public and list the shares on any of the SEC-registered platforms.

He said, “The SEC will continue with the sensitisation programmes and strong capacity building initiatives on non-interest capital markets products and services in order to attract sub-nationals and corporate issuances to this market segment.

“We also plan to provide extra support to the registered commodities trading platforms to complement government’s renewed diversification efforts in agriculture and carry out workshops to deepen the commodities trading ecosystem.”