The Securities and Exchange Commission (SEC) Nigeria on Thursday disclosed that it was enhancing strategies to collaborate with other agencies on a sectoral strategy to deal with cybersecurity threats in the nation’s capital market.
The Director-General of the commission, Mr. Lamido Yuguda made this disclosure when speaking with journalists on the development which was one of the outcomes of the first Capital Market Committee’s (CMC’s) meeting this year.
Yuguda recalled that during the last CMC meeting in 2021, Colonel Bala Fakandu of the Office of National Security Adviser (ONSA) sensitized members on the implementation of the National Cybersecurity Policy and Strategy for the finance and capital market sector.
According to him, the issue of cybersecurity is becoming increasingly important globally as many of the activities of individuals and organisations are now being conducted digitally more than before.
The SEC’s boss pointed out that while the development had significantly raised efficiency level, it had also triggered a new set of risks which the commission must recognize and guard against, adding that this has necessitated the need to work towards a sectoral strategy for tackling these risks.
The capital market regulator said: “The issue of cybersecurity is becoming increasingly important globally. Many of our activities as individuals and organizations are now conducted digitally more than ever before.
“While this has significantly raised our efficiency level, it has triggered a new set of risks which we must recognize and guard against. We are working towards a sectoral strategy for tackling these risks”, he assured.
Yuguda said the Commission would continue to enhance the existing regulatory framework guiding the operations of the market by keeping pace with the evolving changes in market practices, especially with the advent of financial technology (Fintech), which has significantly altered the ways and means of transacting business in the capital market.
In addition, he disclosed that the commission had successfully concluded the extensive review of the ISA 2007 with the aim of passing the Investment and Securities Bill 2021 into law during the year 2022.
He further clarified: “In conjunction with the National Assembly committees on capital market, the Commission organized a retreat to review the entire Bill. We sincerely appreciate the support received from both the Senate and House of Representatives Committees on capital market during the review exercise.”
On the updated Master Plan, which would guide the development of the capital market for the next 5 years, the Director General explained that the review, which forms a critical part of the implementation process and was necessary to ensure that the initiatives remain relevant, are measurable and goal oriented, has been completed.
Yuguda added that the Commission would, in the nearest future, be extending invitation to all market stakeholders for the launch of the revised Master Plan.
On the issue of transaction fees which were non-existent or negligible in the debt capital market, the SEC DG said the cost of regulation was relatively the same as in other instruments and markets, noting that this in addition to the fact that tax advantage gives the market some support, thereby allowing it to grow.
He said: “This support was largely financed by fees from other segments of the Capital Market. We believe that the debt capital market has grown tremendously and is mature enough to contribute to the cost of regulating the Nigerian capital market, ensuring it remains safe and fair to all participants.
“As such, the Commission introduced a regulatory fee structure on secondary market transactions in debt instruments, which took effect from January 1, 2022”, Yuguda added.
