FG’s plan to relinquish 70% equity in ASCE underway

In what appears to be effort towards revitalising Nigeria’s commodities market, there are plans by Federal Government to relinquish 70 percent of its holdings in Abuja Securities and Commodities Exchange (ASCE) through the National Council on Privatisation while retaining 30 percent.

Arunma Oteh, director general, Securities and Exchange Commission (SEC) who disclosed this while briefing the press on outcome of the Capital Market Committee (CMC) meeting held in Lagos said that a steering committee was set up by the Monitoring Technical Committee “and the process is being monitored.”

Capital Market Committee is a body of all stakeholders in the capital market including regulators, trade groups, and observers from other sectors of the financial sector.As an indication of improving investors’ confidence in the Nigerian capital market, she noted that about N416billion or 13 percent of N3.2trillion worth of pension assets under the contributory pension scheme are invested in equities.

Also disclosed was that the Nigerian Stock Exchange (NSE) has become an affiliate member of the International Organisation for Securities Commissions (IOSCO). By this move, the NSE is on the way to becoming a member of the World Federation of Exchanges.

“The IOSCO move was exciting to the market as it showed that all the efforts aimed at sanitising and ensuring transparency in the Nigerian market have been yielding positive results”, Oteh added, noting that the action would also improve foreign patronage of the Nigerian market.

She added: “This is perhaps the most exciting news that we heard today from the management of the Exchange as IOSCO has considered the NSE’s application and has accepted them as an affiliate member. We think this is very good for our market and the investors.”