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Financial inclusion essential for economic growth -SEC DG

Lagos, Feb. 29, 2024: Mr Lamido Yuguda, the Director-General of the Securities and Exchange Commission (SEC), on Wednesday said that financial inclusion is essential in driving economic growth.

Yuguda said in Lagos at the United Capital Asset Management Investment Forum, with the theme, “Deepening Financial Inclusion Through Participation in Collective Investment Scheme: A Collaborative Approach”.

He said it was important to ensure access to affordable financial products and services for underserved populations, to foster economic development, reduce poverty, and enhance overall financial stability and well-being.

Yuguda referenced the 2023 Global Financial Inclusion Index, which ranked Nigeria at 38th place for financial literacy level and educational standard and 40th for overall financial inclusion.

He encouraged stakeholders to collaborate in boosting financial inclusion in the country, expressing the Exchange’s commitment to promoting financial inclusion for sustainable economic growth.

He raised concerns about awareness creation and accessibility as major hurdles impeding the growth of CIS in the country.

Mrs Odiri Oginni, the Managing Director/Chief Executive Officer of United Capital Asset Management Ltd., highlighted that collaboration among stakeholders remained crucial to enhancing financial inclusion in Nigeria.

She said that the investment forum aimed to initiate discussions on methods to promote financial inclusion through CIS.

According to her, Nigeria’s financial inclusion goals cannot be achieved without leveraging the CIS.

She said that bridging the gap between financial inclusion and the CIS is vital for the growth of the nation’s financial sector.

Also, Mr Michael Oyebola, the Founder of Money Counsellors, stressed the importance of education in driving financial inclusion.

Oyebola emphasised the need for people to comprehend the distinctions between savings and investments to strengthen financial inclusion.

He called on regulators to utilise technology to address issues hindering identity management in the country.

Dantata success ponzi shut down by SEC in Kano

SEC wooing foreign investors back in capital market

Lagos, Feb.  10, 2024: The Director-General, Securities and Exchange Commission (SEC), Mr Lamido Yuguda, says the financial sector wants foreign investors back in the capital market to further grow the market and the economy.

Yuguda said on the sideline of a visit of a delegation of the Senate Committee on Capital Market to the Nigerian Exchange Group (NGX Group) in Lagos.

He said that SEC had been trying to design regulations that give confidence to both domestic and foreign investment and investors.

He hinted that some micro-economic policies had been taken over by the Central Bank of Nigeria (CBN) and the Ministry of Finance.

Yuguda said: “We have seen the market responding to these new economic policies, such as the removal of fuel subsidy which is a huge stimulus to the fiscal aspect of the economy.”

He explained further that the policy on the unification of the Foreign Exchange (FX) rate was already generating confidence among investors.

“This is because they are dealing with one price for the FX on one hand and the removal of fuel subsidy on the other hand.

“We want foreign investors to come back into the capital market. The FX policy of the CBN is helping in that direction, but we would give them time to work,” the SEC boss said.

Yuguda said that a number of regulatory policies of SEC would improve the capital market.

According to him, they include the policy on custody of all Chartered Institute of Stockbrokers (CIS) products in the capital market, either bilateral or public are being evolved.

He explained that the CIS sector was already responding to the development, hence, the growth of Assets Under Management.

The director-general advised private sector investors to embrace the platform through the CIS vehicle into the market.

According to him, CIS are highly experienced portfolio managers who are knowledgeable enough to know the best portfolio to invest capital, rather than going directly to invest personally with high risk.

Yuguda expressed hope that the economy would witness a reduction in the fiscal deficit this year, noting that additional reductions would also be experienced in 2025 and 2026.

“Hopefully, we are expected to see a reduction in the overall government deficit, especially in the medium term.

“The overall business environment is getting much brighter and once it becomes much better, people would make different financial decisions that they would have made if the environment has actually been as it was before.

He said that pension funds managers were also rescinding their decisions of previous years to reduce their portfolios and allocation to the equity market.

He said many of the PFA’s have the perception of a better relative value in fixed income than equity, explaining that the perception was changing and would affect the capital market and economy. positively.

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SEC shuts firm for engaging in illegal capital market activities

Abuja, Dec. 15, 2023: The Securities and Exchange Commission (SEC), has sealed the office of Ready Finance Investors Limited for engaging in illegal investment and other capital market activities.

A statement issued by the Commission in Abuja, said the office located at AYA Memorial Plaza, Area 11, Garki, Abuja, was shut down for offering financial investment services suggestive of a covert ponzi scheme.

The Commission said the move was part of efforts to rid the market of fraudulent capital market operators and create a veritable opportunity for legitimate businesses to thrive.

It said the company enticed clients with promises of fixed returns on investment, contingent upon the specific package to which a client subscribed.

According to the Commission, Ready Finance Investors Limited is not

registered with SEC to conduct any activities in the capital market, rendering its operations and activities illegal.

The Commission advised the public against dealing with the company, saying that any person who does that was doing so at his/her own risk.

”The matter is currently under the purview of law enforcement agencies for criminal investigation and subsequent prosecution.

”Other efforts by the Commission to curb the operations of illegal capital market are the amendment of its Anti Money Laundering and Countering the Financing of Terrorism Financing (AML/CFT/CPF) Regulation 2022.

”This is in line with the findings from the National Residual Risk Assessment (NRRA) exercise among others,” the Commission said.

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SEC moves to galvanise capital market for infrastructure development

Lagos, Nov. 18, 2023: The Securities and Exchange Commission (SEC) says it will refocus its attention on ways to galvanise the capital market money for infrastructure financing in 2024 for economic growth and development.

The Director-General of SEC, Mr Lamido Yuguda, said this at the third quarter post-Capital Market Commitee (CMC) news briefing on Friday in Lagos.

Yuguda said the key priorities of the commission in 2024 would centre on infrastructure development and investor education to enhance capital market growth and sustain investor confidence.

Yuguda said the commission would support the Federal Government to unlock the full potential of the capital market in addressing infrastructure deficit.

“One of the most glaring problems of the country is the sorry state of a lot of our infrastructure and really the goal of the commission in 2024 is to refocus attention on how we can galvanise capital market money into financing infrastructure,” he said.

The director-general expressed optimism about unlocking the full potential of the capital market in line with the Renewed Hope Agenda of President Bola Tinubu.

Yuguda said that achieving a one-trillion dollar economy by end of 2026 was possible if the capital market could be properly harnessed.

“This country has what it takes to really do this, this is the direction of the government and this is what SEC is doing to galvanise the market to help finance infrastructure for the people,” Yuguda added.

He disclosed that the commission had set up a group within the capital market to look at the things to be done to achieve the desired goal.

“This is something that is really important for us at SEC, if you look at our country, it’s one of the most significant countries on the earth, not many countries have over 100 million people living in them.

“We have over 200 million people and still growing. We have a lot of young people leaving, we have a lot of our other adults already out of the country.

“And these people are helping these countries with a lot of good ideas. Now some form of migration is necessary and beneficial. But if that migration is happening because people do not see opportunities here, then we can do something about it.

“And I believe if we do the right things, we will not only retain good talents, but will also attract talents from other parts of the world to come and help really build this,” Yuguda said.

He added that the commission would embark on massive investor education in 2024 to educate and enlighten investors on the potential and technicalities of the capital market.

“When you have a market that is literate, it is better; you have people who really understand what they are seeking and they are really happy with those risks.

“When everybody strategically enters the market and is armed with good information, you really have the power of influence. The issue of investor interest is the issue of public awareness,” he added.

Yuguda said the E-Dividend Mandate Techinal Committee presented an update during the CMC on the collaborative project with the Institute of Capital Market Registrars and NIBSS to enhance the e-dividend portal.

The director-general reaffirmed that the enhanced portal would be launched on or before Nov. 30, 2023.

He noted that 18 out of 19 registrars had submitted updated data on Un-Mandated Accounts for upload.

On stock market performance, he observed that market participation had remained heavily skewed to domestic investors.

He attributed the 36.67 per cent performance of the NGX All-Share Index to attractive yields of some stocks, improved sentiments among domestic retail investors, fiscal and monetary policy shifts, inability of T-Bills and other fixed income instruments to positive real return.

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Capital market can finance for PPP projects

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Abuja, Sept. 8, 2023: The Securities and Exchange Commission (SEC) says the country’s capital market has the capacity and well positioned to finance Public-Private Partnership (PPP) infrastructure projects.

A statement by SEC said that the Director-General of the Commission, Mr Lamido Yuguda said this in Abuja on Thursday.

He said the common model used in many developed countries was partnership between the governments and private sector to raise debt capital for PPP projects through bonds and loans.

Yuguda cited a World Bank report which said that the country’s current level of public spending on infrastructure was one of the lowest globally.

He said this lack of investment had resulted in a significant infrastructure gap, which had affected the quality of infrastructure and limited access to essential services.

Yuguda said that given the current rate of capital expenditure, it would take approximately 300 years for the country to bridge its infrastructure gap.

He stressed the need for a new approach to financing infrastructure development in the country to stimulate economic growth.

”Governments can issue bonds to finance their share of the project costs while private companies can secure loans or issue corporate bonds for their contributions.

”The capital market’s ability to provide funding, risk management tools, liquidity, and efficient allocation of resources makes it a crucial partner in the success of PPP projects.

”It allows governments and private sector to partner to leverage their strengths and resources to deliver essential public infrastructure and services,” the director-general said.

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SEC blacklists 6 online trading platforms

The Securities and Exchange Commission (SEC), has blacklisted six online trading platforms in its latest crackdown on illegal and unregistered firms.

In a circular by the Commission on Monday in Abuja, SEC said the platforms were purporting to offer investment and finance services and products.

The circular said the platforms were not registered by the SEC, and the financial services offered by them were also not authorised.

The Commission in the circular listed the companies to include, Prime Invest and “Primeinv.co, FXBoxed, New Finance LLC and New Fx Limited, Axi24, Evolve Consulting LCC and Trust Fund- Mining Global Pty Limited.

“’The Commission’s attention has been drawn to the under listed e-commerce companies and their websites offering online trading platforms to the investing public.

“Members of the public are advised to adopt the greatest diligence in making investment choices.

”In view of the above, the general public is hereby warned that any person dealing with the above mentioned e-commerce websites is doing so at his or her own risk,” the SEC said.

The SEC had earlier warned against patronising a set of firms blacklisted by Italy’s securities regulator, Commissione Nazionale per le Soecieta’ e la Borsa (CONSOB).

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SEC begins sensitisation on National Savings Strategy

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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.

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SEC to apply zero tolerance to money laundering, others

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The Securities and Exchange Commission, (SEC) says it will continue to apply zero tolerance to money laundering, terrorism and proliferation of weapons financing obligations.

The Director-General of SEC, Mr Lamido Yuguda, said this at the first quarter post-Capital Market Committee (CMC) news conference in Abuja on Thursday.

He said that Commission had informed Capital Market Operators (CMOs) about the new Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations and guidelines.

He said the guidelines mandated CMOs to comply with stringent reporting obligations in their dealings.

Yuguda assured investors that interests of minority shareholders would be protected in all transactions in the capital market.

This he said followed the decision of Oando Plc to delist from the Nigerian Exchange Limited (NGX).

He noted that protecting the interests of both majority and minority shareholders was the primary responsibility of the Commission.

“Protection of investors is the central mandate of the Commission and when the Commission protects investors, we do not discriminate between minority and majority shareholders.

“When there is a case of delisting, the application for the delisting comes to the Commission.

”We go through it very carefully to ensure that the shares of the company being delisted are fairly valued because fair valuation is what protects all the shareholders,” he said.

Yuguda said the Commission was working at ensuring that foreign and retail investors were retained and more attracted to the capital market.

He said that the NGX had performed well when put side by side with other markets in the continent.

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SEC, PenCom move to deepen commodity sector

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The Securities and Exchange Commission (SEC) on Wednesday expressed its readiness to collaborate with the National Pension Commission (PenCom) on areas that would assist in further deepening the commodities’ ecosystem.

Director General, SEC, Mr Lamido Yuguda said this at a meeting between the commission’s management, the Lagos Futures and Commodities Exchange and PenCom held in Abuja.

A statement made available in Lagos said Yuguda was represented by Mr Ibrahim Boyi, Executive Commissioner Corporate Services of  SEC at the meeting.

The director general noted that SEC was very passionate about the commodities sector because it has enormous benefits for the economy of the nation.

” One of the key pillars of the Capital market master plan is the development of the commodities ecosystem which gives our nation the opportunity to diversify both the capital market and the economy and also create more products.

“We have recorded a lot of successes in the sector so far and we see a lot of progress in the development of the sector.

” We are currently working with the Standards Organisation of Nigeria (SON) to develop standards that would make these our commodities acceptable in the international market,” he said.

According to him, this would further boost the nation’s foreign exchange earnings and create wealth for the people.

Yuguda explained that SEC was seeking collaboration with PenCom to ensure economic development, as the commodity ecosystem sector has huge potentials if optimally developed.

The director general noted that the commission had witnessed major achievements by the LFCE and is happy to see them progress.

He said : ” We are committed to creating rules that will ensure investor protection.

” It is a strategic focus for us to deliver one of our key mandates which is market development that will lead to economic development.

” Our focus remains market integrity, fairness and investor protection.

Earlier, the Managing Director of LFCE, Mr Akin Akeredolu-Ale said the commodities exchanges are interested in exploring avenues for investing pension funds in the capital market.

Akeredolu-Are expressed joy that SEC was spearheading the Investments And Securities Bill (ISB) to further boost the utilisation of pensions funds in the market.

He added that if pension funds are not reflated, inflation would keep affecting it.

The LFCE director general said : “The primary part of our economic raw materials in crude oil, if not capitalised ; the primary sector, the manufacturing sector will suffer, same as the service sector.

“SEC has made provisions for the Pension Fund Administrators (PFAs) to invest in the commodities sector and this is expected to catalyse our economy and spur growth.

Akeredolu-Ale assured that the reflation of the assets under management would benefit people that have their assets, as globally pension assets are used to stimulate economies.

He stated that the nation’s economy needed to be activated to create opportunities for pension assets to participate in the exchanges.

The director general urged Pencom to look into its rules and encourage PFAs to develop interest in investing in commodity assets on the commodities exchanges like LFCE.

In her remarks, Managing Director, Lotus Capital, Mrs Hajara Adeola said the commodity space is very central to the progress and development of Nigeria’s economy.

Adeola said : ” The capital market is creating instruments and avenues for investments to grow the market and the economy.

“It is important we put these infrastructures in place to make it profitable for our nation.

Responding, Commissioner for Technical, Pencom, Mr Anyim Nyerere said the pension laws are not static but dynamic, hence ;  the commission expects a comprehensive request to enable it expedite actions on the matter.

Nyerere expressed the desire of Pencom to work with relevant agencies to boost the economy, while assuring SEC that Pencom will work within the available laws to support the commodities trading ecosystem.

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Avoid four Italian e-commerce firms, SEC advises Nigerians

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The Securities and Exchange Commission (SEC) has advised Nigerians who are investors to avoid dealing with four blacklisted Italian e-commerce companies.

A statement warning Nigerian investors was published in SEC’s website.

The blacklisted companies are Tetris Group Limited, Broker Capitals Limited, MTinvesting and NBIMarkets.

The warning follows a report that the Italian securities regulator blacklisted the four e-commerce firms over fraudulent trading activities.

 “The attention of the Securities and Exchange Commission, Nigeria (“SEC”) has been drawn to a report that the Italian securities regulator, (Commissione Nazionale per le Soecieta’ e la Borsa – CONSOB) has blacklisted four (4) e-commerce companies and blocked their websites for fraudulent e-trading and unauthorized offering of financial services.’’

The report noted that online financial services providers leverage the complexity of their operations and limited understanding of most prospective investors to conceal details of their activities, thus plunging most investors into taking uninformed decisions.

The CONSOB, therefore, called on investors to adopt the greatest diligence to make informed investment choices to safeguard their savings, including checking the registration status or otherwise of such companies”.

SEC further informed the Nigerian investing public that the aforementioned companies are not registered in Nigeria. The investment schemes promoted by the entities are also not authorised by the SEC.

“The general public is hereby warned that any person dealing with the named companies in any capital market-related business is doing so at his/her own risk,” the Commission said.

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