Business
Nigeria’s Insecurity Affects Capital Market Operations – DG
Securities and Exchange Commission (SEC) Director-General, Arumna Oteh said on Tuesday that insecurity in parts of the country was having a negative impact on the capital market.
Oteh said this in Abuja at a public hearing on the operations of the capital market organised by the House of Representatives Committee on Capital Market and Other Institutions.
She said that the spate of bombings by the Boko Haram sect had eroded the interest of investors in the market.
“The spate of bombings by the Boko Haram sect has led to an increase in the perception of insecurity in some parts of Nigeria with consequent negative impact on the market.
However, she said that the commission was putting in place strategic interventions to strengthen the operations of the market in order to restore investors’ confidence.
According to her, the commission have also taken steps to strengthen Collective Investment Schemes (CIS) through regular on-site inspections of the schemes as well as transfer of fund asset.
She said that because of the losses suffered by shareholders from the market crisis in 2008, many local investors were hesitant to invest in the market.
Oteh said that bond market witnessed significant activities in 2011, as the Federal Government issued a total of 28 new tranches of bonds valued at N791 trillion.
She said that the commission had constituted a committee of experts to undertake a review of the Nigerian Capital Market.
“The impact of the global financial crisis and the subsequent stock market crash was devastating for the capital market,’’ she said.
Speaker Aminu Tambuwal, who was represented by the Deputy Speaker Emeka Ihedioha, charged participants to be objective in their presentations as it would help the committee in its findings.
He said that the National Assembly would always live up to the expectations of Nigerians by enacting laws for good governance.
Earlier, Rep. Herman Hembe (PDP-Benue), the Chairman of the committee, said that about 10 million Nigerians had lost their investments in the market.
He attributed the collapse of the market to the inability of the regulatory body to effectively supervise the administration of the market.
Hembe also attributed the crisis to the breakdown in corporate governance by financial institutions.
The lawmaker stressed that key policy makers in the market were ill-prepared for the crisis.
He lamented that the money market had recovered from the 2009 crisis while the capital market remained adamant.
The chairman promised stakeholders of a fair hearing as the committee would “leave no stone unturned” to reposition the market.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.