The Securities and Exchange Commission (SEC) has called for an active collaboration between the government and market participants to enhance market growth and facilitate economic development.
The Director-General of SEC, Mr Lamido Yuguda, made the call while addressing journalists at the 2023 conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) held in Lagos at the weekend.
Yuguda said synergy holds the potential of unleashing capital market prowess and paving the way for a prosperous future.
According to him, achieving the objective necessitates an increased utilisation of market mechanisms and instruments to raise funds and stimulate economic advancement.
He pointed out that the commission would continue to introduce new ideas and policies that would support the development and regulation of a capital market that is dynamic, fair, transparent, and efficient to contribute to the nation’s economic development, noting that investors protection play a crucial role in the development and integrity of the capital market.
“Effectively harnessing the capital market for national. development entails a multi-faceted approach, these include deploying more infrastructure, fostering more public-private partnerships, establishing specialised entities like special purpose vehicles (SPVs), listing state-owned enterprises, issuing green bonds to support sustainable projects, and bolstering small and medium enterprises among others.
Yuguda, who was represented by the Executive Commissioner Operations, SEC, Mr Dayo Obisan, said by adopting these strategic approaches, government and market participants can create a dynamic capital market that attracts diverse investments, fuels economic growth, and contributes significantly to national development goals.
He assured that the commission was poised to create an enabling environment and facilitate oversight and regulatory framework that would continue to deepen the market support development.
According to him, the revised capital market master plan underscored SEC’s commitment to deepening and. repositioning the financial market as a key driver of sustainable economic growth.
“The master plan which represents collective aspirations of the capital market community is focused on driving initiatives geared towards growing and deepening the market with the ultimate goal of accelerating the emergence of our dear country in the top 20 economies by the year 2025,” Yuguda said.
He, however, assured that the commission would remain committed to supporting efforts aimed at addressing the financial literacy and empowerment gap in society.
Also speaking at the event, the Deputy Director, SEC Lagos Zonal office, Mr John Briggs, urged the government to create infrastructure financing instruments that would facilitate easy servicing of obligations.
“We have encouraged a lot of infrastructure funds like sukuk, and green bonds and we are even talking about blue bonds to develop the market.
“The capital market has created the conducive environment to ensure a transparent and dynamic market which would continue to attract investment,” he said.
Earlier, the Chairman of CAMCAN, Mrs Chinyere Joel-Nwokeoma, said the yearly workshop was part of the association’s contributions to the development of the nation’s economy.
According to her, the forum had consistently served as an avenue for regulators, operators, and company executives to brainstorm on issues that affect the market and economy.
She said the theme of this year’s conference ‘Leveraging Capital Market in Financing The National Development Plan’ was predicated on the compelling need to properly execute the National Development Plan, with the capital market as the hub of medium- and long-term sources of finance.
She said: “It’s no longer news that Nigeria, according to the World Bank, needs $3 trillion to close its infrastructure deficit with funding requirements estimated at between $100 billion and $150 billion annually in the next 10 years.
“The plan, introduced in 2021, aims to generate 21 million jobs and lift 35 million people out of poverty by 2025, thus setting the stage for achieving the government’s vision of lifting 100 million Nigerians out of poverty in 10 years.
“All these projections can only achieved, and challenges solved, through proper utilisation of the capital market by creating new asset classes and portfolio diversification. All hands must be on deck to address these challenges to achieve economic growth and development.”