The capital market community will soon begin a sensitisation programme and stakeholder engagement on the implementation of the National Savings Strategy (NSS).
Mr Lamido Yuguda, Director-General of the Securities and Exchange Commission (SEC), said in a statement issued at the end of the First Quarter Capital Market Committee meeting held virtually on Sunday.
Yuguda said the need to establish a National Savings Strategy, as outlined in the Capital Market Master Plan, was ”one of the key strategies to enhance capital formation by mobilising domestic funds for investment to drive rapid economic growth’.
“It envisages the deliberate provision of risk capital as venture capital and private equity that are naira- based and more committed to the long-term prosperity of Nigeria as well as create a buffer to the instability created by foreign investors,” he said.
The Capital Market Master Plan Implementation Council (CAMMIC) had commissioned a white paper on a National Savings Strategy and recommended to the Minister of Finance, Budget and National Planning the formation of a working group to explore the feasibility of the report findings.
Yuguda said that the initiative would aid the mobilisation of funds in order to boost the national economy.
The SEC DG also said that ,as part of its accomplishments, the Technical Committee on the Commodities Trading Ecosystem had collaborated with the various Commodities Exchanges in discussion with National Insurance Commission(NAICOM) .
He said that the aim of the engagement was to explore ways of deepening the market by encouraging the involvement of insurance companies, expanding insurance coverage for the commodities trading value chain, and implementing other mechanisms for mitigating risks in the ecosystem.
Yuguda said, “Additionally, the Committee engaged the Nigerian Bulk Electricity Trading Plc (NBET) on modalities to establish an Energy Exchange.
“On its part, the Nigerian Agricultural Insurance Corporation (NAIC) worked with the commission to continuously reduce risks in the agricultural value chain.
“The Commodities Trading Ecosystem Implementation Committee (CTEIC) welcomed the NAIC as a member to foster greater collaboration and support for the ecosystem.
“The Non-Interest Capital Market Implementation Committee provided updates on various activities, including its ongoing engagement with the Federal Inland Revenue Services (FIRS) on the recently -released regulations on taxation of non-interest financial instruments.”
Yuguda stated that the committee informed the meeting that SEC had received feedback from stakeholders on exposure of draft Rules on Shari’ah Advisory Services.
He also noted that issuers of securities and their advisers were admonished to take advantage of the conducive environment to come up with financial products that would appeal to target classes of investors.
Lamido expressed optimism about the growth potential of the Nigerian Capital Market and reaffirmed the commission’s commitment to building and maintaining a vibrant, fair, and transparent market for investors and issuers alike.
