By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Board of Nigeria’s Securities and Exchange Commission (SEC) has said it will tap into the ongoing reforms in the Power, Oil/Gas, Agriculture and Telecommunications Sectors of the Nigerian Economy in a bid to enlarge the Market and encourage participation.
Suleyman Ndanusa, Chairman of SEC said this last week at an interactive session with Publishers and Chief Executive Officers (CEO’s) of Media Organisations.
Below is the excerpt of his welcome address:
Distinguished Ladies and Gentlemen, it is my pleasure to welcome you to this meeting which is the very first interaction which the new Board of the Securities and Exchange Commission (SEC) will be having with Senior Executives of media organizations.
The decision to interact with the media early in the life of the Board is a clear reflection of the premium which we place on the partnership between the media and the capital market and also on the role of the media in fostering an orderly, transparent and stable market. Let me therefore on behalf of my colleagues, thank you for accepting our invitation. The Board and Management of the Commission recognize your esteemed positions as the standard bearers of the nation’s media community and are mindful of the significant sacrifice you all have made to be here today.
The dream is to build a market that has a global competitive edge. A market that is able to meet the domestic needs of the Nigerian economy, serve as the investment hub not just of West Africa but indeed the whole of Africa while also contributing considerably to the global economy. To achieve this will be to build a market that is in tune in all respects with global standards.
It is our collective responsibility to grow a market that boasts of robust product offerings; fair, efficient and transparent processes; integrity; strong and transparent disclosure and accountability regime; sound regulatory framework; investor confidence and good corporate governance. The Board and management of the SEC are poised to deploy necessary resources and partner with all stakeholders including the media, to ensure the realisation of this aspiration.
It is without doubt that the last three years have seen tremendous improvements in the structure and content of the Nigerian capital market and this is underscored from the steady rise in market fortunes after the storm of the financial crisis, which has seen a return of domestic and foreign investors. The Board of the Commission is in the process of articulating a blueprint with the overriding agenda being to key into on-going reforms and make such inputs as to ensure that the desired objectives of the reforms are achieved.
In a bid to enlarge the market and encourage participation, the Board will tap into the current reforms in the power, oil and gas, agriculture and telecommunication sectors. This is with an eye on the potential of new firms in these sectors to list on the stock exchange and thereby broaden market offerings. We will also monitor the plan of the Asset Management Company of Nigeria (AMCON) to sell the bridge banks to investors, part of the float of which we believe should end up on the stock exchange.
The foregoing notwithstanding, the economy will not likely transform without medium and short term finance being channeled toward stimulating enterpreneurship through Small and Medium Enterprises (SMEs). This behoves on us the necessity to put in place such framework as would encourage access to medium to long term fund by SMEs and indeed the large companies. Likewise, the need for increased access to finance by the SMEs and corporates alike brings to the fore the necessity of expanding the participation base through financial inclusion strategies such as collective investment schemes. We shall join forces with the relevant stakeholders to promote a saving and investment culture in Nigeria, to ensure improved financial inclusion in the economy.
The Board has, in the short time since its inauguration, responded to these critical needs of the market. For example, we approved new rules on Private Equity Fund, Nominee Account and Sukuk Bond Issuance (Non interest Finance) in addition to making amendments to other rules and regulations with which the Commission conducts market governance. The new rules and regulations were made to enable the introduction of new products which will further deepen and widen the market space.
This meeting is intended to serve as a forum to share perspectives on current developments and the growth of the market, strengthen the enduring partnership that has existed between us and more importantly, to familiarise the fourth estate of the realm with the Board’s growth agenda for the Nigerian capital market and explore avenues to leverage the media in ensuring the efficient delivery of the agenda. A collective agenda, the content of which has been carefully developed and are clearly articulated within the framework of the purpose which the market should in the first instance serve the economy and the society.
The importance of the capital market as an enabler of wealth creation and the enhancer of societal welfare cannot be overemphasized. Any aspiration to grow the economic system which does not incorporate the capital market is therefore not likely achievable. This is because the market plays a very strategic role in the growth and development of economies all over the world. To grow the economic system therefore is to ensure that we have a capital market with an efficient mechanism to create wealth and tackle head-on the challenges that confront it. Such market must be strong, fair, efficient and robust. It must be a market which regulatory and enforcement standards are at the highest levels; One with a wide product and investor base, and an invigorated investor education regime.
You may recall as I do with a lot of pride today, that between the years 1999 and 2004 when I served as the Director General of the Securities and Exchange Commission, we had at the time made our modest contributions to ensure that we build a fair and efficient market comparable with other markets around the world. However, the joy and pride I feel today is not just borne out of our modest contributions at the time but also because I see the reforms and improvements that have been built on the foundations which we had laid in years past. Notwithstanding the progress achieved so far, I make bold to say that there is still a lot to be done to take our markets to competitive and enviable heights. It is therefore my joy, to be back today as Chairman of a Board which parades some of the best brains you can find, so that together we can grow the potential of the market for our collective benefit as Nigerians.
In the area of market enforcement, we shall continually reinforce the zero tolerance policy for market infractions in order to further drive misconduct on the part of market participants down to the barest threshold. We shall strengthen the market surveillance systems to discourage and promptly identify anomalies, and refer such for necessary enforcement action as may be required. We shall also reinforce the naming and shaming of recalcitrant individuals and firms to deter would be rule breakers into being responsible partners in the overall interest of the market.
We shall also enhance the use of technology, an enabler of market capacity, efficiency and transparency. Today, it is almost not practicable to monitor a dynamic and increasingly sophisticated market effectively without the application of technology. We shall continue to work with stakeholders to improve the technology base of the market to ensure optimal performance while also strengthening our regulatory capacity. Priority shall be given to improving the technological base of the market in view of its potential to boost market efficiency while not neglecting to devote adequate resources to human capital development.
Distinguished Ladies and Gentlemen, the zeal of the Board to achieve these goals can only be best imagined. It is however trite that we cannot on our own achieve the lofty goals without the support and cooperation of stakeholders like yourselves.
I therefore seize the opportunity of this interaction to ask for the support of this influential constituency in communicating our regulatory and market development strides. We appeal to you to join forces with us to enable a world class capital market that will indeed contribute to a globally competitive economy.
Thank you for your attention.
Dr. Suleyman A. Ndanusa
Chairman,
Securities and Exchange Commission
6th March 2013. Lagos
