The Acting Director General of the Securities and Exchange Commission, SEC, Ms Mary Uduk said on Wednesday that new products and innovative processes being introduced by operators and regulators in the Nigerian capital market had the potential of boosting the market’s growth faster than old conventional products of equities and bonds
Uduk made the remarks when students of Aduvie Pre University College, Modibbo Adama University, Yola and University of Abuja paid excursion visits to the commission.
Noting that capital markets globally have products and mechanisms to stimulate economic growth and development, the investment expert pointed out although many of such products are available in Nigeria, there were aspects that are still untapped, thereby limiting the realization of our potential.
She explained that it was based on this reason that some of the processes of the SEC that were previously manual and inefficient are now being automated to make the market more attractive to investors.
Uduk said: “For instance, with the de-materialization process completed, investors no longer need to not worry about the loss or damage to their physical share certificates as they are now electronically stored.
“Further, the current e-Dividend system enables shareholders’ dividend to be paid directly into their bank account without the stress of dealing with physical dividend warrants. Also, the Direct Cash Settlement protects investors from funds mismanagement by ensuring that the proceeds of their shares sales are credited directly into their own account as against that of the stockbroker.
“We are equally working on ensuring that companies’ annual reports are distributed electronically thereby ensuring timeliness of information to shareholders and cost reduction to public companies” she added.
The Acting Director General told the students that through the Commodities Trading Implementation Committee, the commission had engaged the Standards Organizations of Nigeria to publicize the relevant standards issued for agricultural products, while warehouses have also been mapped to provide information on its availability and location.
This is even as she hinted that the SEC was working towards a future where the capital market would be used to solve challenges of mis-pricing and non-standardization of commodity products as well as low foreign exchange earnings from the nation’s agricultural sector.
.In his remarks, Head of Faculty (Social Sciences) Aduvie Pre University College, Abuja, Mr. Sixtus Onyekwere said that the college was making a difference in the lives of the students, adding that by bringing them to places like the SEC, the school wants to educate them about operations of the capital market, so that they can understand from a young age how to engage in investment activities and the opportunities that many are ignorant about.
He explained: “To be rich in life, you need to start up your own business, invest in financial markets and learn about how money works. No amount of Schooling will teach you about money or what it takes to recognize opportunities for investment and become rich.
“To get these educations, you need to leave your school environment once a while to visit places like the Securities and Exchange Commission, learn about its operations, get advice from accomplished entrepreneurs and interact with the real money makers. This will teach you how money works and how you can take advantage of the opportunities around you.
“By this, they can become the world’s richest people of tomorrow and make positive contributions to communities, which will guarantee a better tomorrow for Nigeria. We want our students to actually succeed in life, and stand out among their peers”, Onyekwere added. .
Onyekwere said further that in addition to producing good academic results, there was the need to pursue reduction in youth unemployment rate, community mindedness, pursuing entrepreneurship mindset, great personality, personal branding, as well as building global leaders.
