The director general of the Securities and Exchange Commission, Lamido Yuguda, has stated that the commission’s 2019 focus will be on capital market funding for infrastructure.
According to The Punch, Yuguda made this statement at the Capital Market Committee’s third-quarter press briefing, which was conducted in Lagos on Friday.
He declared: “The Commission’s objective for 2024 is to bring attention back to the ways in which we can stimulate capital market investment in the financing of infrastructure. The president has declared that by 2026, a $1 trillion GDP could be achieved in three years. By the end of this decade, a $3 trillion economy is feasible, and I am among those who sincerely think that this objective is achievable.
“This country does have the necessary resources to succeed. The Securities and Commission is acting in accordance with government directives to stimulate the market and aid in financing projects. We specifically addressed this topic yesterday (at the CMC meeting), and a group was even formed to examine the steps that must be taken to forward this process.
The head of the SEC also mentioned that the group would get together before the year’s end.
Speaking about delisting in the capital market, Yuguda stated that although high-cap stocks were still available on the market, the Commission was working to draw in more listings. Some companies, such as Union Bank, PZ Cussons Nigeria Plc, Glaxo SmithKline Consumer Nigeria Plc, and others, were in the process of delisting.
He said, “After sitting down, we calculated. If you take the market capitalization of all the companies that have departed in the last several years. This is the full value of their shareholding; contrast it with the newly listed firms; the percentage of exiting companies is less than 2%.”
In addition, Yuguda stated, “So the firms that are truly driving the industry in terms of market capitalization are not exiting the Nigerian market; rather, they are actually entering and entering in large numbers. It is actually necessary for us to increase the market capitalization from its current level. That was the 50% goal, after all. That is what we need, to have more and more of these companies.”
During the media briefing, it was also disclosed that the national assembly had given the SEC support to help pass the Investment and Securities Bill, which reinforced the Commission’s authority, established provisions for the commodities exchange market, and toughened penalties for those running Ponzi schemes.