Chartered Institute of Stockbrokers (CIS) has faulted the Federal Government’s failure to reconstitute the Securities and Exchange Commission (SEC) board, after almost five years that the previous board had been dissolved.
Past president of the institute, Michael Itegboje, at the Institute of Stockbrokers’ Interactive Forum with Vice President Yemi Osinbajo in Lagos, noted that such regulatory lapses threaten efforts to restore confidence in the market. Itegboje said: “Since 2015, SEC does not have a board. We do not think that SEC is vital to Nigeria’s economy. There is more emphasis on money market.
“It is high time the SEC board was put in place. If the capital market must play its role in the economy, SEC must be accorded same respect as the Central bank of Nigeria (CBN).”
In the financial sector, the money market is regulated by CBN, while SEC takes care of the capital market. Acting director-general, SEC, Ms Mary Uduk, advocated privatisation of moribund government enterprises by using the capital market as a platform.
This, she said, will not only ensure revival of the companies, but also boost to the stock market capitalisation. Uduk also underscored the essence of the commission’s Ten-Year Development Plan designed to make the Nigerian capital market more competitive. Osinbajo, at the forum, assured market participants that SEC would be respected as the apex capital market regulator.
The vice president, who was represented by the Minister for Trade and Investment, Dr. Okechukwu Enelama, said: “The vice president is presently involved in an active campaign and would have loved to be here.“I assure you that the SEC must be given the respect it deserves, and we will ensure that all capital market issues are consolidated in the next level. The government will look into it. I will communicate this to the vice president for action to be taken.” He emphasised the need for more collaboration between the government and capital market stakeholders, adding that government was ready to partner with the market to grow the economy.
Government cannot finance its huge infrastructure deficit without the instrumentality of the capital market, he added.“The government has done well in moving the economy forward, considering where it met it in 2015. Nevertheless, there are still a lot more to do. It is obvious that there are important matters we cannot solve without the help of the capital market, especially in infrastructure.
“We have used goodwill and relationship to try and bridge the gap in infrastructure deficit, but the capital market can be a very important part in this aspect; that is why we are having this session,” the vice president said.