The Securities and Exchange Commission (SEC) has revealed its plans to reposition the capital market to facilitate infrastructure financing in 2024, as part of efforts to drive economic growth and development.
Speaking at the third-quarter post-Capital Market Committee (CMC) news briefing in Lagos, the Director-General of SEC, Lamido Yuguda, highlighted the commission’s key priorities for the coming year. These include a focus on infrastructure development and investor education to stimulate capital market growth and strengthen investor confidence.
Yuguda emphasised that the commission will collaborate with the Federal Government to leverage the capital market in addressing the country’s infrastructure deficit. He stated, “The commission’s goal in 2024 is to refocus attention on how we can galvanise capital market funds into financing infrastructure, which is one of the most pressing issues in the country.”
Expressing optimism about unlocking the full potential of the capital market, Yuguda aligned the SEC’s agenda with President Bola Tinubu’s Renewed Hope Agenda. He asserted that with proper harnessing, the capital market could contribute to the realisation of a one-trillion dollar economy by the end of 2026.
“This country has the potential to achieve this milestone. It’s the direction of the government, and SEC is committed to mobilising the market to facilitate infrastructure financing for the people,” Yuguda added.
Furthermore, he disclosed that the commission had established a dedicated group within the capital market to strategise and execute the necessary steps to achieve this objective.
“It is imperative for us at SEC to focus on this. Our country is one of the most populous in the world, with over 200 million people and a growing population. Retaining talents and attracting global expertise is crucial for our development,” Yuguda remarked.
Highlighting the importance of investor education, Yuguda outlined the commission’s plan to conduct extensive investor enlightenment initiatives in 2024. He emphasised that a financially literate market with well-informed participants leads to better decision-making and influences market dynamics positively.
“When investors are equipped with adequate knowledge and understand the risks involved, their confidence in the market grows. Strategic and informed participation fosters a powerful market. Therefore, the issue of investor interest is directly linked to public awareness,” he explained.
Yuguda also announced that the E-Dividend Mandate Technical Committee presented an update during the CMC on the collaborative project with the Institute of Capital Market Registrars and NIBSS to enhance the e-dividend portal. He reaffirmed the launch of the enhanced portal on or before November 30, 2023. Additionally, he noted that 18 out of 19 registrars had submitted updated data on Un-Mandated Accounts for upload.
Assessing the stock market performance, the director-general observed that domestic investors remained the dominant participants, attributing the 36.67 per cent performance of the NGX All-Share Index to the attractive yields of certain stocks, improved sentiments among domestic retail investors, and shifts in fiscal and monetary policies.
Yuguda concluded by highlighting the inability of T-Bills and other fixed income instruments to provide positive real returns as a contributing factor to the market dynamics.
NAN
