Business

SEC reaffirms commitment to $1trn economy target

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1 year ago

ALL hands seem to be on deck as the Securities and Exchange Commission (SEC), in its bid to promote a vibrant capital market in the country, reaffirmed commitment towards deepening the market to support the $1trillion economy target by the President Tinubu-led federal government.

President Bola Tinubu, recently at the Nigerian Economic Summit (NES), had informed business community that Nigeria’s economy can grow to $1 trillion by 2026, adding that a $3 trillion Nigerian economy is possible in 10 years.

The Director-General of Securities and Exchange Commission, Lamido Yuguda, indeed affirmed that the target is realisable and achievable if the capital market is properly harnessed, while disclosing that the commission had set up a group within the capital market to look at things to be done to achieve the desired goal.

At the third quarter post-Capital Market Committee, (CMC) press briefing on Friday in Lagos, Yuguda the commission will refocus its attention on ways to support the Federal Government to unlock the full potential of the capital market in addressing infrastructure deficit, for economic growth and development.

“One of the most glaring problems of the country is the sorry state of a lot of our infrastructure and really, the goal of the commission in 2024 is to refocus attention on how we can galvanise capital market money into financing infrastructure,” he said.

By ensuring funding of critical infrastructure in the country through the capital market, Yuguda said it would not only provide a conducive operating environment for businesses, but would also enhance the production capacity of Nigerians, thereby soaring the nation’s economic growth and development.

The commission, in 2024 is set to intensify efforts in investors education; as it believes that investors literacy and public awareness is critical to mobilise more companies and investors to take advantage of opportunities offered by the capital market.

Yuguda said the commission will embark on massive investor education in 2024 to educate and enlighten investors on the potential and technicalities of the capital market.

“When you have a market that is literate, it is better; you have people who really understand what they are seeking and they are really happy with those risks.

“When everybody strategically enters the market and is armed with good information, you really have the power of influence. The issue of investor interest is the issue of public awareness,” he added.

Giving details of the recently concluded CMC meeting, he said, the meeting mandated SEC to enhance public awareness of the capital market’s benefits, expressing optimism that the envisioned one trillion-dollar economy could be realised, with the help of collaborative efforts and productive actions in the capital market.

At the CMC meeting, stakeholders affirmed rededicated efforts towards further deepening of the market to serve as a veritable tool for infrastructure financing in the country, while fostering collaboration and embracing innovation to build a greater future.

To tackle backlog of unclaimed dividend, the commission announced the launch of a revamped portal on or before November 30, 2023.

At the CMC meeting, the E-Dividend Mandate Technical Committee presented an update on the collaborative project with ICMR and NIBSS to enhance the e-Dividend portal.

With the successful issuance of the sixth FGN Sukuk by the Debt Management Office (DMO), with a remarkable subscription level of 435 percent; the Non-Interest Technical Committee informed that plans have been finalised to engage with various stakeholders to explore the development of Shariah-compliant liquidity instruments for the commodities market, and creation of short-term Sukuk with the DMO.

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