The Securities and Exchange Commission has decried the low patronage of the Collective Investment Scheme by Nigerian investors.

According to the regulator, it is disheartening that very few people in the country have developed interest in investing in CIS.

The Director-General, SEC, Ms. Arunma Oteh, said that compared to other countries,, Nigerian investors had yet to embrace the CIS, adding that it was essential that investors took advantage of  that investment vehicle.

Oteh was speaking at the inauguration of the post Capital Market Committee Briefing and Maiden Edition of the Integrity Awards in Lagos on Tuesday.

She said, “I would like to say at this point that our local and retail investors have yet to fully participate in the CIS which remains a good investment vehicle. It is important to note that in a few countries all over the world, investors are taking advantage of this investment vehicle, and we believe that our retail investors should do same.

“For instance, in Brazil, over five million retail investors are investing in CIS, while Nigeria which has about five million retail investors, less than 250,000 investors make use of the CIS vehicle and we hope that would be replicated here in Nigeria.”

Oteh added that SEC would continue to strengthen the regulatory framework concerning the operations of CIS to ensure that investors were armed with the necessary information as regards the funds they wished to invest with.

Stakeholders who were also present at the meeting, called on the Federal Government to facilitate the listing of successful firms in the unbundling process of Power Holding Company of Nigeria on the floor of the Nigerian Stock Exchange.

According to them, the listing of the shares of the companies would ensure that Nigerians feel a sense of belonging in the operations of the distribution companies.

 Responding to this, Oteh noted that the issue had been raised at the National Economic Management meeting, adding that it was in the public interest that firms operating in the power, oil, gas and telecommunication sectors  go public.

 Oteh added that listing the firms was expected to give Nigerians opportunity to participate in the unfolding development in the power sector.

“We believe that this move would go a long way towards deepening the market and attracting even more investments into the market. Presently, we have over 70 per cent of our daily transactions from foreign investors and we are of the belief that the listing of these firms would attract more investors,” she stated.

“She also commended the Federal Government for the appreciable level recorded in the power situation, adding that the stability would go a long way towards attracting more investments into the market.

Source: Punch/Udeme Ekwere