Nigeria’s SEC working on initiative to attract more firms into capital market
The nation’s capital market regulator, Securities and Exchange Commission (SEC) said it’s working out modalities to attract more companies to deploy market instruments in raising funds and listing on the local bourse.
According to the commission, it plans to boost the market capitalisation of the Nigerian Stock Exchange (NSE) through the initiative and increase the contributions of the sector to the nation’s economy.
Lamido Yuguda, who spoke through the Commission Director of its Lagos Zonal Office, Stephen Falomo in Lagos, said SEC took some strategic initiatives to boost market activities and crystallise the growth of the capital market.
He said the commission efforts are geared toward cushioning the negative impact of the Coronavirus pandemic on the market.
Yuguda said its committee on COVID-19 has continued to provide support and equipment towards combating the pandemic and its effect.
The SEC has continued to leverage its business continuity plan and those of its operators to ensure that capital market activities are carried out during this period with little or no disruption.
“Currently, investors with multiple accounts are being allowed to consolidate their accounts into a single one and claim their accrued dividends.
“This is in a bid to encourage more domestic participation in the market. In deepening the market, we are exploring various avenues to increase the number of companies and instruments in our market thereby raising the market capitalisation.
“We believe this is necessary for our market to continue to contribute its quota to the development of our nation’s national economy,” Yuguda said.
The SEC chief said that the commission is working on an initiative that would help shorten the time it takes for investors and companies from accessing the market in its bid to eradicate bureaucratic bottlenecks encountered in raising funds through the market.
“This key initiative involves the ease of administrative procedures from the point of registration of market instruments with the commission to actualising funds raised from the general investing public in order to create efficiency,” Yuguda said.