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…Says CIS Funds Rose From N1.1Tn In 2020 To N2.1Tn In October
The Securities and Exchange Commission (SEC) has said that it is advancing its plans to introduce internal solutions that align with its mission of effective market regulation. This is just as he disclosed that the Collective Investment Schemes(CIS) funds had risen from about N1.1 trillion at the beginning of 2020 to about N2.1 trillion at the end of October 2023.
The Director General of SEC, Lamido Yuguda At A-Two-Day Journalist Academy, Organised By the Nigerian Capital Market Institute (NCMI) In Lagos to further boost the knowledge of the market and report it accurately and professionally.
Lamido hinted that to manage risk and entrench trust in Collective Investment Schemes(CIS), the Commission mandated that all CIS funds be held in custody.
This, he said, has helped the growth of these funds from about N1.1 trillion at the beginning of 2020 to about N2.1 trillion at the end of October 2023.
According to him, “We continue to encourage investors, especially those on the retail end, to approach the market through these CIS funds, as they provide investors with the opportunity to have their investments managed by knowledgeable investment professionals.”
Speaking on the perennial problem of unclaimed dividends, Lamido said that the Capital Market Committee, under the leadership of the Commission, has embarked on the creation of a new e-dividend portal, which is expected to become operational on the 30th of November 2023.
He explained that when it comes into operation, the portal will simplify the process of mandating accounts for e-dividend, adding that this will improve efficiency and ultimately lead to a significant fall in unclaimed dividends.
The SEC Director General stated that as part of its efforts to ensure that new dividends do not become unclaimed, the Commission is presently supporting work on an identity management system that would ensure that investors and market participants are properly identified to forestall the problems that led to accumulation of unclaimed dividends.
Lamido explained that in line with the Commission’s developmental role, the zonal offices have continued to conduct investor clinics, adding that these clinics provide solutions to investors dealing with issues relating to their investments in the capital market.
The clinics, he said, have not only also served as good platforms for . They also serve as good platforms for investor education and awareness but they also support the financial inclusion efforts of the Commission.
The SEC boss informed that over the past four years, the Commission has worked hard to expand and deepen the market through the creation of new products and the expansion of existing ones and that two Central CounterParties (CCPs) were registered and over 30 derivatives contracts approved to kick-start derivatives trading in Nigeria. Over the period, the Exchange Traded Funds (ETFs) market has grown from nothing to about from about N18 billion today.
The non-interest capital markets segment, Lamido said, is growing, and “we continue to witness successful Sukuk issuances. The green and blue bond markets are also beginning to see some activity.”
On the Commodities market, Lamido said that it is also growing in leaps and bounds, informing that the Commission has registered five commodities exchanges and supported their growth. It also supported the on-going revamp of the Nigerian Commodities Exchange (NCX) by the Central Bank of Nigeria.
“Today we have three strong multi-product exchanges driving the growth of our market. This is good, as healthy competition spurs innovation and growth. The activities of these exchanges have helped us make marked advances in product and market development.
“I am happy to tell you that the Nigerian stock market has reached a new all-time high, with the NGX All-share Index crossing the 70,000-point mark on 1st November, 2023. This represents a more than 30 per cent increase this year. The consistent growth of the market is testament to the hard work put in by the entire market, led by the Commission,” he said.
The SEC DG said that over the past four years, the Commission had tens of issuances of equities and bonds, stressing that this year, SEC has a total of 19 new issuances valued at ₦338.39 billion and that the Commission has also reviewed and approved 11 mergers and acquisitions this year.
Speaking on its investor protection mandate, Lamido told journalists that the Commission has also continued its efforts to educate shareholders and the public about capital market operations through media channels.
He stated that at the weekly enlightenment programmes, discussions are focused primarily on providing an overview of the Nigerian Capital Market and highlighting the consequences of engaging with ponzi scheme operators.
The Commission, he hinted, has also issued several warnings about Ponzi schemes and digital assets not registered with the Commission.
Earlier, the DG who welcomed journalists to the programme, said the training will offer them an opportunity to delve into the core workings, regulations, and innovations that shape the financial sector, particularly the capital market.
“Our primary goal is to equip you with the knowledge and skills needed to accurately and effectively report on these critical aspects,” he said.
Speaking further Lamido said that journalists hold a pivotal position in the capital market, informing, educating, and guiding.
In his words, “You provide investors with timely and precise information on market trends, financial instruments, and corporate performance, thereby empowering informed investment choices.”
The role of journalists in promoting market transparency, accountability, and integrity, he said cannot be over emphasised as their efforts educate investors, simplify complex financial concepts, promote good corporate governance and enhance market confidence.
He said that journalists boost market efficiency by swiftly disseminating information, aiding in risk assessment, and exposing fraudulent activities.
According to him, “Your impact on public perception and market sentiment is significant, fostering a safer and more equitable market, benefiting investors and the wider economy.”
About 60 journalists from different media organisations including : Online, Radio, TV, Newspapers attended the two-day training programme at SEC Lagos Zonal Office .
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