The Securities and Exchange Commission (SEC) has reiterated the important role the capital market plays in the development of any country through the provision of long-term funds for infrastructure development.
The Director-General of SEC, Mr Lamido Yuguda said this when a team from the Nigerian Economic Summit Group (NESG) visited the Commission in Abuja, to seek partnership in developing the economy.
The SEC DG said that the capital market can do more in the areas of providing the necessary infrastructure for the country in a bid to support the government in its developmental strides.
Yuguda said, “Our collective economic power is bigger than the government and, in many countries, you find out that the capital market is actually funding the government. When you save, the finance is used to create economic value that actually enhances your standard of living and this is a win-win. You get financial returns and also get utility from the investments and this is actually achievable.”
The SEC DG welcomed the collaboration with the NESG noting that both organisations could do more for the economic development of the country.
“On the capital market, it is a welcome development that we are talking with the NESG for there is something that really needs to happen in this country. When you look at our policy environment, in many areas it is not conducive for the return of capital to investors and we are working hard to tackle this”, Yuguda further stated.
He pointed out that the telecommunications companies are successful because no one is getting the services for free as everyone pays, and added, “We all pay for the services no one is getting the services for free, but when we move on our roads, we say no we do not want to pay for it. In other countries people pay for their roads and they are happy doing that because the roads are good.
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“We need to have a collaboration with a group like NESG. Once we are able to put things right, investors will be willing to put in money and there will be returns.”
Chief Executive Officer of NESG, Mr Laoye Jaiyeola, in his remarks, expressed worry that the banking sector is being overstressed and urged governments and corporate organisations to look towards the capital market for their funding needs.
“The securities market needs to take the bull by the horn otherwise we are going to be in perpetual debt as a nation and that will not help us.
“That is one of the reasons we say let’s re-engage, how can we get an Investments and Securities Act that will ensure that the needed funding for development in Nigeria is given priority and then we can fund Nigeria for a longer-term.
“The short-term funding cannot help us; we need to begin to move to long-term. We are passionate about it and we need to raise these funds for the needed development funding for Nigeria”, Mr Jaiyeola said.
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