The Chairman of Senate Committee on Capital Market and Institutions, Sen. Osita Izunaso, on Tuesday assured the Red Chambers’ commitment to legislative reforms that would support current drives to deepen investments in the Nigerian capital market.
The lawmaker, who made this promise when he led a delegation of the committee to Nigerian Exchange Group (NGX Group), harped on the important role of the capital market in fostering national development and urged stakeholders to work together in ensuring that the bourse is better capitalized to serve as a catalyst in Nigeria’s development.
He explained: “We are going to look at all the legislative frameworks in the National Assembly waiting for amendment in one form or the other. We are going to review the Investment and Securities bill before us, the CIS bill, as well as to revisit the Private Companies Conversion and Listings (PCCL) Bill that has been in the National Assembly since 2014 and other legislation that would drive the market. “
Izunaso pointed out that beyond legislative efforts, there was need for aggressive public enlightenment on the benefits of investing in the stock market to Nigeria’s sustainable growth through legislations aimed at incentivizing companies to list on the Exchange.
He, therefore, urged companies to get listed on the stock exchange to ensure transparency and mitigate issues of tax evasion as well as support the growth of the companies and the nation’s economy.
On the purpose of the committee’s visit, the lawmaker said” “Our visit to NGX today is a testament to our dedication to advancing the growth agenda of the Nigerian capital market. We would continue to collaborate closely with market stakeholders to address existing challenges and unlock opportunities for growth.”
In his remarks, the Director-General of the Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, assured the NGX Group’s management of its determination to continually strengthen the capital market’s regulatory framework aimed at deepening the market.
Specifically, the investment expert spoke on the efforts by the commission to attract more private investors into the market.
He said: “We are doing everything that we can to get regulations that give confidence to both domestic and foreign investors. For example, we have the policy on custody of all CIS products in our market, whether bilateral or public and we have seen the CIS sector responding positively to this development.
“The assets under management are growing and investors are better advised to invest through the CIS because they have experienced portfolio managers who are best equipped to manage their investments”, Yuguda added.
The Group Chairman of NGX, Alhaji Umaru Kwairanga, stressed the need for collaborative efforts between government, regulatory bodies, and market participants to unlock the market’s potential.
Speaking at the meeting, the Group Chief Executive Officer of NGX Group, Temi Popoola, emphasized the importance of legislative interventions to encourage dollar-denominated transactions in the bourse as well its roles in revenue mobilization and tax compliance.
He also spoke on the importance of pension reforms and the introduction of derivatives into the market as instruments to mitigate the market’s volatility due to current uncertainties in the global investment markets.
