Osita Izunaso, Chairman, Senate Committee on Capital Market and Institutions has assured the commitment of the Senate in driving legislative reforms that would propel the Nigerian capital market to new heights.
He made this promise when he led delegation’s visit to Nigerian Exchange Group (NGX Group) on Tuesday. Izunaso emphasized the pivotal role of the capital market in fostering economic prosperity and urged stakeholders to work together towards achieving common objectives.
“We are going to look at all the legislative frameworks in the National Assembly waiting for amendment in one form or the other. We are going to review the Investment and Securities bill before us, the CIS bill, as well as to 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. “
Izunaso added that beyond legislative efforts, there was need for aggressive public enlightenment on the benefits of investing in the stock market. He stressed the importance of these legislative interventions in incentivizing companies to list on the Exchange. “I use this opportunity to call on companies in Nigeria to get listed on the stock exchange to ensure transparency and mitigate issues of tax evasion. It would also ensure the growth of the individual companies and the economy at large.
“Our visit to NGX today is a testament to our dedication to advancing the growth agenda of the Nigerian capital market. We would continue to collaborate closely with market stakeholders to address existing challenges and unlock opportunities for growth.”
Lamido Yuguda, Director General, Securities and Exchange Commission (SEC) assured NGX Group of strengthening its regulatory framework aimed at supporting the Exchange and deepening the market.
Speaking about efforts to motivate more private investors into the market, he stated. “We are doing everything that we can to get 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.”
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Umaru Kwairanga, Group Chairman of NGX in his remarks emphasized the need for collaborative efforts between government, regulatory bodies, and market participants to unlock the market’s full potential.
Temi Popoola, Group Chief Executive Officer of NGX Group echoed Kwairanga’s sentiments, emphasizing the importance of legislative interventions to encourage dollar-denominated transactions and the role of the capital market in revenue mobilization and tax compliance. He also highlighted the importance of pension reforms and the introduction of derivatives as instruments to mitigate market volatility.