capital market

Senate hails SEC on financial management

Published

2 years ago

September 15, 2022

…Calls for incentives to attract young Nigerians

The Securities and Exchange Commission has been commended on its efforts so far in returning the Commission to profitability and urged to explore ways to further deepen the capital market in a bid to attract more local investors especially young Nigerians.

Chairman of the Senate Committee on Finance Senator Solomon Olamilekan Adeola gave the advice during at the 2023-2025 Medium Term Expenditure Framework/Fiscal Strategy Paper, MTEF/FSP interactive session with the Senate Committee on Finance in Abuja on Tuesday.

Senator Adeola while commending the Management of the Commission for their efforts so far in turning around the fortunes of the SEC, however stated the need for more efforts in a bid to make the capital market more attractive to Nigerians.

According to him, “You have done well, I must commend you. I commend you for your efforts in repositioning that agency from a point of deficit after paying salaries to a point of profit now and to the extent of contributing to the coffers of government, I commend you.

“But going forward, there is still a lot to be done at the SEC and I believe that you will try your best. So many people are not interested in the Nigerian capital market again, it is losing steam. Even though other world economies market no one is patronising them because it is not the best of times, but I want you to see ways by which you can encourage local investors to our capital market.

“That is one area you should spread your tentacles to, let the young people know that if they put money in the market in the shortest possible time they can access their profit. You have done well, but there is always room for improvement. It is that improvement we are trying to emphasise on now and we think you are getting it right now; we hope God will guide you in your quest to turn around the fortunes of the SEC.”

Speaking earlier, the Director General of SEC Mr. Lamido Yuguda told the senators that the Commission is 100 per cent self-funded agency of government and pays dues to the Consolidated Revenue Fund of the Federal Government under the Finance Act 2020 that has amended the Fiscal Responsibility Act of 2007.

He said, “Right now we are contributing 25 per cent to the Federal Government which is deducted at source and we are also asked to pay another 15 per cent at the end of the financial year when we submit our annual accounts. That is making 40 per cent in total, I am saying that based on what we have done so far, that 40 per cent is a little too heavy for the Commission and I would like this Committee to look at this issue.

“We have abided by the provision of the Act as we have committed the sum of N1.588b for the 6 months ending June 2022. For the whole of 2021, we have done N1.367b and then for the 6 months in 2020. We have contributed a total of N3.705 from the time the deductions started.”

While admitting that the Commission has recorded major turnaround in its fortunes, Yuguda however stated that 40 per cent contribution to CRF might be too high for the SEC and urged the Senators to take a second look.

“We have been able to cope with the 25 per cent since it started, but the additional 15 per ent has actually been very difficult for us. We are coming from a deficit position, when the bill for the 15 per cent came, the Commission had already spent the balance of the 75 per cent that we were able to retain on pour overheads.

“The Commission is doing a lot to attract more Nigerians to the market and we have achieved a lot in that regard. We know the capital market can do a lot to assist the government in its current efforts to reposition its finances and the economy,

Yuguda who stated that the Commission has been operating under very difficult circumstances since it is currently superintending over a market that was affected by the negative impact of the coronavirus pandemic, however assured that steps are being taken to ensure that the fortunes of the SEC continues to improve.

He disclosed that the Commission raises revenue from the market to finance its regulatory activities on the market, but however cautioned that if these fees are raised too high, they will deter mobilisation of capital and deter participation in the capital market saying that there needs to be a good balance between asking SEC to raise revenues to finance its activities and asking SEC to also contribute revenue to the coffers of government.

He said, “If we go through the Medium-Term Expenditure Framework which we started last year, if we look at 2022 and 2023, you will see that we have worked on our expenditure and have done a lot of financial management to turn around the fortunes of the Commission. We therefore need the support of all to engineer the kind of transition we are thinking of at the SEC.”

capital market

FG lists N4.214bn April savings bonds on NGX

Published

1 day ago

May 16, 2024

NewsDirect

The Federal Government has listed its April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange Limited platform.

This was disclosed in the market bulletin signed by Godstime Iwenekhai, Head, Issuers Regulation Department of NGX.

According to the bulletin, “Trading License Holders are hereby notified that the April 2024 Issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on Nigerian Exchange Limited (NGX) on May 13, 2024.”

Details of the Bonds include FGS April 2026, 1.228 million units valued at N1.228 billion at a coupon rate of 17.046 percent, while FGS April 2027, 2.986 million units amounted to N2.986 billion at a coupon rate of 18.046 percent.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, according to the debt office.

FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month.

The retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.

capital market

LCFE inducts 23 commodities brokers

Published

1 day ago

May 16, 2024

NewsDirect

As part of its capacity building functions, Lagos Commodities and Futures Exchange (LCFE), has onboarded and inducted another 23 Commodities Brokers, the fourth edition in the series, to increase the number of professionals to specialise in various asset classes in the Nigerian commodities ecosystem.

On the list of those inducted last week were the Managing Director, Dynamic Portfolio Limited, Mr Remi Lasaki and many Chief Executive Officers of stockbroking companies in Nigeria.

In his welcome address, LCFE’s Managing Director and Chief Executive Officer, Mr Akin Akeredolu-Ale, urged the inductees join hands with The Exchange to build a virile commodities market that shall be beneficial to all.

“LCFE is working hard to build a market that will benefit the entire Capital Market and its brokers. Each broker can select a commodity and dedicate their focus on it, thereby enhancing your company’s wealth, your individual skill set and contributing to the growth of the Nigerian Economy.

“Together, let us seize this opportunity to build a vibrant and dynamic marketplace that unlocks new possibilities for investors, enhances economic prosperity, and positions Nigeria as a leader in commodities trading.

“The Exchange is actively engaging with the Securities and Exchange Commission to obtain approval for more products like Lithium, diamond and Oil and Gas commodities. Just yesterday, we signed an MOU with a Global Certification Agent Bureau Veritas to certify lithium and other Solid Mineral commodities to be traded on LCFE. Additionally, we have made significant strides in the Cashew ecosystem, signing an MOU with the Cashew Association of Nigeria (CAN), aggregators, and a major cashew processor.

“Eko Gold also represents a pioneering investment opportunity within our commodities ecosystem, leveraging stability and transparency to diversify options, attract capital, and create value across the value chain. LCFE is fully committed to supporting its growth and providing brokers with the tools and guidance needed for effective promotion of the asset classes,” said Akeredolu-Ale.

Corroborating him, the Chairman, Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, noted LCFE was established for total transformation of commodities exchanges in Nigeria and boost the country’s Gross Domestic Product (GDP).

“The underpinning drive for establishing the exchange was the need to transform and reposition the commodities market and harness opportunities in the commodities ecosystem. This drive will enhance and crate value for all stakeholders in the ecosystem,” he said.

The newly elected President of Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, congratulated the inductees and advised them to uphold the ethical standard of the profession and operate with skills and integrity.

Akeredolu-Ale also congratulated the new board and management of Securities and Exchange Commission (SEC), under the new Director General, Dr Emomotimi Agada.

In July last year, the Pan African Exchange inducted 33 commodities brokers, including the first female office holder at Chartered Institute of Stockbrokers (CIS), Mrs Fiona Ahimie.

capital market

Tinubu asks Senate to confirm four board members of SEC

Published

1 day ago

May 16, 2024

NewsDirect

President Bola Tinubu has asked the Senate to screen and confirm four persons appointed as board members of the Securities and Exchange Commission (SEC), the apex regulator of Nigeria’s Capital Market.

The President’s request was contained in a letter read by the Senate President, Godswill Akpabio during the plenary on Wednesday.

The appointed members of the SEC are Emomotimi Agama, Frana Chukwuogor, Bola Ajomale and Samiya Hassan-Usman.

While Agama was appointed as Director-General, Mr Chukwuogor will serve as Executive Commissioner (Legal and Enforcement) of the Security and Exchange Commission. Ajomale was appointed as Executive Commissioner (Operations) while Hassan-Usman was appointed as Executive Commissioner (Corporate Services).

In April, President Tinubu approved the appointment of seven persons as members of the SEC pending their confirmations by the Senate. But, only four names were transmitted to the Senate for confirmation and Tinubu did not give reasons for not including the names of the other three professionals.

In the letter, the President explained that the appointment complied with the provisions of section (1) of the Investment and Security Act of 2007.

“Confirmation of appointment of the Director-General and Commissioners of the Securities and Exchange Commission.

“By the provision of sections 3 and 5 (1) of theInvestment and Securities Act 2007. I am pleased to present for confirmation by the Senate the under-listed four nominees as Director-General and Commissioners of Securities and Exchange Commission,” he said.

The president urged the lawmakers to expedite the screening and confirmation process.

The Senate President thereafter referred the request to the Senate Committee on Capital Markets to report back to the Senate within two weeks.