Capital market financing for Nigeria’s economic growth

The House of Representatives Committee on capital market and other institutions have assured the Securities and Exchange Commission that it is willing to provide support by way of enabling laws to support the growth of the capital market.

The Chairman of the Committee, Ibrahim Babangida, while speaking during a meeting with SEC in Abuja, said, “We have invited you to brief us on your activities so that we can all be very familiar with your work and know how we can assist to deepen the capital market.

“We also need to know your challenges, if any, and find ways of assisting to ensure that you do your work well. We are available to make new laws, amend existing laws, resolve inter agency conflicts if any.

“We also need you to espouse your plans to us and let us know what we can do to make your job easier. We assure you that the committee will support you in your efforts to make our capital market one of the best.

The acting Director-General, SEC, Ms Mary Uduk, said most of the Commission’s recent initiatives were guided by the 10-year (2015 to 2025) Capital Market Master Plan, which was launched by in 2014 for the purpose of positioning the capital market for an accelerated development of the national economy.

Uduk said, “In implementing the plan and other policy initiatives, the Nigerian capital market has been contributing its quota towards the growth and development of the country.

“For instance, with the dematerialisation process completed, investors no longer need to worry about the loss or damage to their physical share certificates as they are now electronically stored.”

Uduk stated that the commission’s e-dividend system enabled shareholders’ dividend to be paid directly into their bank accounts without the stress of dealing with physical dividend warrants.

She added that the direct cash settlement protected investors from funds mismanagement by ensuring that the proceeds from sales of their shares were credited directly into their own account, as against that of the stockbroker.

According to Uduk, the Commission is working on ensuring that companies’ annual reports are distributed electronically, thereby ensuring timeliness of information to shareholders and cost reduction to public companies.