SEC stretches partnership to deal with cyber security in capital market

The Securities and Exchange Commission, SEC, is joining forces with other agencies towards developing a sectoral strategy to deal with any potential cyber security threat on the Nigerian capital market.

The Director-General of SEC, Mr Lamido Yuguda disclosed this on Thursday and informed the media on the development, which was one of the outcomes of the first Capital Market Committee meeting of 2022.

For over two decades, the CMC has served as a veritable platform for interface amongst capital market stakeholders, to discuss issues germane to the development and orderly conduct of market activities.

The SEC Director-General  recalled that during the last CMC in 2021, Colonel Bala Fakandu of the Office of National Security Adviser (ONSA) sensitized members on the implementation of the National Cybersecurity Policy and Strategy for the finance and capital market sector.

He said that the issue of cybersecurity is becoming increasingly important globally, as many of the activities of individuals and organizations are now being conducted digitally more than ever before.

Yuguda said that while this has significantly raised efficiency levels, it has triggered a new set of risks which the commission must recognize and guard against.

This, according to him, necessitated the need to work towards a sectoral strategy for tackling these risks.

He said, “The issue of cybersecurity is becoming increasingly important globally. Many of our activities as individuals and organizations are now conducted digitally more than ever before.

“While this has significantly raised our efficiency level, it has triggered a new set of risks which we must recognize and guard against. We are working towards a sectoral strategy for tackling these risks.”

Yuguda said the Commission will continue to enhance the existing regulatory framework guiding the operations of the market, by keeping pace with the evolving changes in market practices, especially with the advent of Financial Technology which has significantly altered the ways and means of transacting business in the capital market.

He also said the commission has successfully concluded the extensive review of the ISA 2007 with the aim of passing the Investment and Securities Bill 2021 into law during the year 2022.

“In conjunction with the National Assembly committees on capital market, the Commission organized a retreat to review the entire Bill. We sincerely appreciate the support received from both the Senate and House of Representatives Committees on capital markets during the review exercise,” he said.

Speaking on the updated Master Plan, which would guide the development of the capital market for the next 5 years, the SEC DG explained that the review, which forms a critical part of the implementation process and was necessary to ensure that the initiatives remain relevant, measurable and goal oriented, has been completed.

He added that the Commission will, in the nearest future, be extending an invitation to all market stakeholders for the launch of the revised Master Plan.

On the issue of transaction fees which were non-existent or negligible in the debt capital market, the SEC DG said the cost of regulation was relatively the same as in other instruments and markets.

This, he noted, is in addition to the fact that tax advantage gave the market some support, allowing it to grow.

He added, “This support was largely financed by fees from other segments of the Capital Market. We believe that the debt capital market has grown tremendously and is mature enough to contribute to the cost of regulating the Nigerian capital market, ensuring it remains safe and fair to all participants.

“As such, the Commission introduced a regulatory fee structure on secondary market transactions in debt instruments, which took effect from January 1, 2022.”

SEC has also expressed worry over the high level of unclaimed dividends in the market.

The Director-General of SEC, Mr Lamido Yuguda, said this at the Post Capital Market Committee (CMC) webinar press briefing on Thursday.

Yuguda said that although dividends were currently distributed electronically, there were so many unclaimed ones.

The DG attributed unclaimed dividends to multiple subscriptions whereby some investors used various means to subscribe for more than permitted number of shares during public offers.

He said that the number of unclaimed dividends would reduce drastically if everyone mandated their accounts.

According to him, SEC has invested a lot of resources, embarked on a number of investor education to ensure that people mandate their account.

“This process is still open, you can do that with the registrar, from commercial banks.

“We also have on our website, a tool which helps you to determine any unclaimed dividend that you may have and I will encourage everyone to take advantage of these tools,” he said.

Yuguda said that dividends that had not been claimed over a certain period were being transferred into the trust fund.

According to him, if anyone comes forward at any given time to claim their unclaimed dividend, this fund will be able to repay those dividends without any problems.

The D-G said that any investment scheme not registered with the Commission was not a bonafide capital market operator.

He urged investors to always check with SEC to know the licensed operators before investing.

“SEC can register a capital market operator and that operator in the cause of his business begins to show signs of distress, the SEC has adequate mechanism to deal with this through our monitoring and enforcement arm,” he said.

The reports that the CMC is a platform for interface amongst capital market stakeholders to discuss issues germane to the development and orderly conduct of the market.

Nigerian Breweries to pay N12.92bn to shareholders for FY 2021

Nigerian Breweries has disclosed that the company has recommended a total dividend valued at N12.92 billion to be paid to its shareholders for the 2021 financial year.

According to the press release, the recommendation represents the total dividend of N1.60k per ordinary share of 50kobo each. This consists of an interim dividend of N0.40k which was paid in December 2021, while the final dividend of N1.20k per share is expected to be paid to the shareholders of the company on 22nd April 2022.

The Managing Director of the company, Mr. Hans Essaadi, speaking at the Pre- AGM media briefing held in Lagos on Thursday, April 7, 2022, described the 100% dividend payout recommendation as clear evidence of the company’s commitment to delivering superior value to its shareholders in terms of dividends.