Securities & Exchange
Commission (SEC) has said
it determined to make the
Nigerian capital market the
most developed in Africa
by 2025, hence the string of
initiatives taken in the recent
past.
The commission’s Acting
Director-General, Dr. Abdul
Zubair, listed the initiatives
as its Complaint Management
Framework; National Investor
Protection Fund (NIPF);
Corporate Governance Code
and Scorecard; and Non–
Interest Products.
Speaking at the 2017 edition
of the Annual Conference of
Capital Market Correspondents
Association of Nigeria
(CAMCAN) in Lagos, he also
assured that the apex regulator
will continue to ensure stability
in the Nigerian Capital market,
besides maintaining a high
level of investor confidence in
the market.
Zubair also expressed the
commission’s “commitments
to ensure market efficiency,
accountability and
transparency in the Capital
Market.”
He assured all stakeholders
of a “commitment to ensuring
an uninterrupted and orderly
operation of the market and the
regulations thereof,” a object he
said the press remains critical
to achieving.
The acting DG noted that
the Nigerian stock market has
recorded significant growth so
far this year with total issuances
valued at N1.55tr as of the end
of third quarter on September
30, 2017, out of which equities
accounted for 12%.
In the secondary market,
Zubair reported that total
equities transactions has risen
by 78.6% to N1.655tr between
2016 and September 2017, of
which foreign transactions
increased by 47.31% during
the period; just as the NSE All
Share Index achieved a 47.11%
return as at Thursday, 7th
December 2017, representing
“a remarkable recovery for the
Exchange.”
In the FMDQ market, he said
total turnover as of August
stood at N12.9trn and N12.18trn
in October, with treasury bills
dominating activities; while on
the NASD portfolio, trade was
valued at N352.42m in October
2017, which was 22.4% higher
than the level in January 2017.
He noted that the commission
has in recent months embarked
on market development
initiatives including the
design and implementation
of “laudable programmes to
create more awareness and
further deepen the market.
Recently, the Commission
embarked on an outreach in
some area councils of the FCT.”
SEC, he added, joined its
counterparts all over the world
to mark the IOSCO World
Investors week in Abuja and
Lagos involving stakeholders,
investors, and students to
promote financial inclusion,
besides holding an “Investor
Education Portal dedicated
to educate investors of
financial literacy and activities
of the capital market has
been designed and contents
uploaded. The portal will soon
become accessible to all.”
On the National Investor
Protection Fund, he recalled
that “from a peak of N12.6tr in
March 2008, the stock market
suffered a setback arising
from the global financial crisis,
plummeting to N7.3tr by
December of that year.”
Arising from the slump, he
lamented that retail investors
became apathetic to investment
in the capital market and
that “in order to restore their
confidence, the National
Investor Protection Fund was
set and inaugurated by the SEC
board.
“To date, hundreds of
investors have benefited
from the fund, which enabled
them to get protection in the
event the crash,” noting that
Section 13k of the Investment
and Securities Act, (ISA) 2007
empowers the SEC to establish
the NIPF to compensate
losses of investors who are
not covered by the Investor
Protection Funds operated
by Securities Exchanges and
Capital Trade Points.
“The NIPF was incorporated
in March 2012 with an
endowment fund of ₦5bn
initial amount. The maximum
amount which an investor
can claim from the fund is
₦200,000.00.”

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