SEC solicits NESG’s support on economic development

By Etuka Sunday 

The Securities and Exchange Commission (SEC) has sought for collaboration with the the Nigerian Economic Summit Group for the development of the nation’s economy. 

Director General of the SEC, Mr. Lamido Yuguda stated this when a team from the NESG visited the Commission in Abuja.

Yuguda welcomed the collaboration with the NESG saying that both organisations could do more for the economic development of the country.

“On the capital market, it is a welcome development that we are talking with the NESG for there is something that really needs to happen in this country. When you look at our policy environment, in many areas it is not conducive for the return of capital to investors and we are working hard to tackle this.

The SEC DG noted that the telecommunications companies are successful because no one is getting the services for free as everyone pays. 

“We all pay for the services no one is getting the services for free, but when we move on our roads, we say no we do not want to pay for it. In other countries people pay for their roads and they are happy doing that, because the roads are good.

“We need to have a collaboration with a group like NESG. Once we are able to put things right, investors will be willing to put in money and there will be returns. 

In his remarks, Chief Executive Officer of NESG, Mr. Laoye Jaiyeola, expressed worry that the banking sector is being over stressed urging Governments and Corporates organisations to look towards the capital market for their funding needs.

Jaiyeola stated that transactions can be restructured to raise bonds, bills and all of those things that will fund whatever it is that needs to be funded without going through banks. 

He said, “The securities market needs to take the bull by the horn otherwise we are going to be in perpetual debt as a Nation and that will not help us. That is one of the reasons we say let’s re-engage, how can we get an Investments and Securities Act that will ensure that the needed funding for development in Nigeria is given priority and then we can fund Nigeria for a longer term.

The short term funding cannot help us; we need to begin to move to long-term. We are passionate about it and we need to raise these funds for the needed development funding for Nigeria.

Also speaking, Executive Commissioner Legal and Enforcement SEC, Mr. Reginald Karawusa stated that the current ISA was signed into Law by then President Musa YarÁdua in 2007, which makes it 15 years old now. 

Karawusa said the SEC set up an industry-wide Committee to rework the law adding that several market experts were involved in redrafting the law as well as inputs from stakeholders.

According to him, “a draft was tabled to the 8th assembly, unfortunately the assembly left before passing the Bill. Getting the bill passed will be a major thing for the capital market. There are new provisions that will strengthen the SEC to effectively regulate to make us a top notch regulator to increase the number of products. There is also a provision that will enable us play with National Savings Scheme, which is another major gate changer if the Bill becomes passed. Therefore, any support we can get from the NESG will be appreciated.”