SEC Solicits NESG’s Support On Development Of Capital Market Instruments

The Securities and Exchange Commission has restated the vital role the capital market plays in the development of any country through the provision of long-term funds for infrastructure development among others.

The Director-General of SEC Mr. Lamido Yuguda stated this when a team from the Nigerian Economic Summit Group (NESG) visited the Commission in Abuja, to collaborate with the Commission towards the development of the economy.

The SEC DG said that the capital market can actually do more in the areas of provision of necessary infrastructure for the country in a bid to support the government in its developmental efforts.

He 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.”

Yuguda welcomed the collaboration with the NESG saying 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.”

The SEC DG noted that the telecommunications companies are successful because no one is getting the services for free as everyone pays.

He 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.

“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.”

In his remarks, Chief Executive Officer of NESG, Mr. Laoye Jaiyeola, expressed worry that the banking sector is being over stressed and urging governments and corporates organisations to look towards the capital market for their funding needs.

He said, “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.”