The Chairman, House Committee on Capital Markets and institutions, Hon. Babangida Ibrahim, has called for strengthening of the regulatory framework of the capital market to attract more investments.
Ibrahim made the remarks during a stakeholders meeting on Investments and Securities Bill held on Monday in Lagos.
He said due to the vital role that capital markets played in the growth and development of the economy, there was need for investments to be conducted under a secured and transparent environment.
“This meeting is to review the current developments in the Nigerian Capital Market and also dissect the content of the Investments and Securities Bill, 2021 and make appropriate contributions.
“Towards strengthening and enhancing the regulatory and supervisory framework of the Securities and Exchange Comission (SEC) as the umpire of the capital markets.
“SEC, with our determined commitment for the passage of the Bill, which has already passed the second reading, I believe at the end of this retreat a clearer focus would be charted to ensure the success of the passage of the Bill,” he said.
Ibrahim said he hoped that contributions at stakeholders’ meeting would strengthen the operational framework of the capital market.
“We as Stakeholders must offer our valued ideas and bring in our expertise and professionalism to this piece of legislation.
“We should note that for this bill to pass through the legislative activities successfully in the National Assembly, it must be holistic and comprehensive.
“Therefore, I urge the management of the mommission and the entire stakeholders gathered here to bring out our best towards this course,” he added.
He also assured stakeholders of the National Assembly’s support in any area of legislation necessary to actualise the vision of SEC to make the investment and securities businesses in Nigeria better.
The Director-General of the SEC, Mr. Lamido Yuguda, expressed the need for a legislation that would address the current realities and prepare the Nigerian capital market for the prospective changes in the future.
Yuguda said the significance of the capital markets could not be over emphasised as governments needed the capital market to deliver the goods and services that the nation needed.
“I hereby wish to register my profound appreciation for the support from the two committees of the National Assembly to us in our various interactions over the last one and half years.
“This has helped the leadership of the Commission in doing things differently and I can say confidently that we are in a better state than we were two years ago.
“With this kind of support we are going to get the capital market of our dreams,” he stated.
Also speaking, the Chief Executive Officer, Nigerian Exchange Ltd., Mr Temi Popoola, emphasised that most of the developmental challenges the country faced could be solved through the capital market.
He said: “The capital market stimulates economic growth, mobilises savings, creates wealth, contributes to infrastructure development, reduces scarcity of foreign currency, aids financial inclusion, and promotes transparency and good governance.
“It is, therefore, crucial that the market becomes more innovative in product development to attract a more diversified array of market players both in the listing and trading segments.
“Undoubtedly, if we are able to deepen our market and make it stronger, there will be inflows and our nation will grow and become healthier,” he noted.
The Chairman Senate Committee on Capital Markets, Senator Ibikunle Amosun, in his goodwill message said a lot of changes had happened in the global stock market, hence the need for Nigeria to move with the tide.
Represented by Senator Kashim Shettima, Amosun said: “It is interesting to note that the last time the Act was enacted was in 2007. There are lots of changes in the global stock market and we need to move with the tide.
“There is, therefore, the need for a review of the ISA to conform with current realities. This is a good forum for us to come up with robust solutions to the challenges,” he said.