Lagos, Feb. 7, 2024: The Chairman, Senate Committee on Capital Market and Institutions, Mr Osita Izunaso, says the Senate is committed to ensuring legislative reforms that will improve the status of the Nigerian capital market.
Izunaso made the pledge to the capital market community when he led a delegation of the committee to the Closing Gong ceremony of the Nigerian Exchange Group (NGX Group) on Tuesday in Lagos.
He noted that the capital market plays a pivotal role in fostering economic prosperity, adding that the market is the future of the Nigerian economy.
“We are going to look at all the legislative frameworks in the National
Assembly waiting for amendment in one form or the other.
“The Senate committee would review the Investment and Securities bill and CIS bill before us.
“We will also revisit the Private Companies Conversion and Listings (PCCL) bill that has been in the National Assembly since 2014 and other legislation that would drive the market,” he said.
According to him, beyond legislative efforts, there was need for aggressive public enlightenment on the benefits of investing in the stock market.
The Senate committee chairman noted that legislative interventions would act as incentives for companies to list on the Exchange.
Izunaso charged the capital market stakeholders to work together towards achieving common objectives.
He added: “Our visit to the NGX is a testament to our dedication to advancing the growth agenda of the Nigerian capital market.
“We would continue to collaborate closely with the market stakeholders, to address existing challenges and unlock opportunities for growth.
“I call on companies in Nigeria to get listed on the stock exchange to ensure transparency and mitigate issues of tax evasion.
“This would enable the growth of individual companies and the economy at large.
Commenting, Mr Lamido Yuguda, Director General, Securities and Exchange Commission (SEC), assured the NGX Group of strengthening regulatory framework that would support the Exchange and deepen the market.
Yuguda said, SEC was working assiduously to formulate regulations that give confidence to both domestic and foreign investors.
“For example, we have the policy on custody of all CIS products in our market, whether bilateral or public and we have seen the CIS sector responding positively to this development.
“The asset under management are growing and investors are better advised to invest through the CIS because they have experienced portfolio managers who are best equipped to manage their investments,” he said.
In his remark, the Group Chairman of NGX, Mr Umaru Kwairanga, emphasised the need for collaborative efforts between government, regulatory bodies, and market participants to unlock the market’s full potential.
Kwairanga expressed assurance that with the support of the Senate, more companies would be listed on the Stock Exchange.
He noted that the Exchange has the resources and capacity to raise capital for the listed companies for the benefit of the investors.
Also, Mr Temi Popoola, Group Chief Executive Officer of NGX Group, emphasised the importance of legislative interventions to encourage dollar-denominated transactions.
Popoola said that the role of the capital market in revenue mobilisation and tax compliance cannot be overemphasised
He noted that pension reforms and the introduction of derivatives as instruments was also important to mitigate market volatility.
