Nigeria’s Security and Exchange Commission (SEC), announced it is about to commence the sensitization program and stakeholder engagement in implementing the National Savings Strategy (NSS).
The SEC said this is necessitated by its Capital Market Master Plan, adding that one of the key strategies to enhance capital formation is mobilizing domestic funds for investment to drive rapid economic growth.
This was disclosed in a statement on Sunday by Mr. Lamido Yuguda, Director-General of the Securities and Exchange Commission (SEC) after the First Quarter Capital Market Committee.
National Savings Strategy enables enhanced capital formation by mobilizing domestic funds for investment to drive rapid economic growth.
The initiative would aid the mobilization of funds in order to boost the national economy.
SEC also explores ways of deepening market participation by encouraging the involvement of insurance companies.
Mr. Lamido Yuguda, Director-General of the Securities and Exchange Commission (SEC) said the need to establish a National Savings Strategy, is a major component of the SEC’s Capital Market Master Plan, which enables strategies’ to enhance capital formation by mobilizing domestic funds for investment to drive rapid economic growth, he added:
“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.”
The SEC chief also noted that 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, citing that the initiative would aid the mobilization of funds in order to boost the national economy.
The SEC added that its Technical Committee on the Commodities Trading Ecosystem had collaborated with the various Commodities Exchanges in discussion with National Insurance Commission(NAICOM), 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, he added:
“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.”
The Securities and Exchange Commission, SEC, assured investors that the interest of minority shareholders would be protected during all transactions in the capital market.
This follows the decision of Oando Plc to delist from the Nigerian Exchange Limited, NGX, and the crises rocking the management of Seplat Energy Plc.
SEC Chief, Yuguda said 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 cones to the Commission and we go through it very carefully to ensure that the shares of the company being delisted are fairly valued because fair valuation protects all the shareholders”, he explained.