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The Director General of Nigerian Securities and Exchange Commission (SEC), Mounir Gwarzo, said things are looking good for the capital market and the nation with the growth the market witnessed in the last quarter, which also coincided with a low general inflation as well as increased GDP and Foreign Reserve Nigeria has recorded.
The DG maintained this position on Monday during a Press Briefing by the Commission at its Lagos office, even as he lamented that many Nigerians have not utilized the free registration window on the e-dividends platform which growth “has been at a slow pace.”
Gwarzo said what the Capital Market did in the last quarter “was good, recording 36.5 per cent growth in price index with inflation down, the GDP up and Foreign Reserve increased with about $3bn, showing things are looking very good with the nation and the capital market.”
While decrying what he called a slow pace of growth in e-dividends enrollment that recorded “no appreciable increase in the last three months,” the DG noted that SEC and Registrars agreed to put as many Nigerians as are willing on the platform and urged the public to utilize the free registration period for e-dividends till December so that their dividends could be paid directly into bank accounts without hassles.
It is on record that a total of 2.1 million persons registered for the e-dividends as of July 2017 since inception. This is as only 50,819, 59,204 and 37,153 enrollees got on the platform in August, September and October this year respectively as the DG said the Commission expected a minimum of 50,000 persons to enroll monthly.
Gwarzo said SEC was also looking into the commodity exchange ecosystem in Nigeria to compliment the diversification efforts of the Federal Government, and to forestall the occurrence of commodities getting spoilt before reaching their final destination. He also noted that liquidity is an issue the commission would address as many people don’t have access to it.
He, therefore said public enlightenment program was already being carried out in the northwest and same would be replicated in the southwest soon, so as to get investors educated and upscale investment, focusing on update on the review of the laws and rulemaking so as “to be more proactive and more engaging by providing reasons for rules and to contribute to the development of the market.”
Professor Afolabi Olowookere, however, submitted that with the 2018 budget indicating that the deficit would be financed by internal sources, the capital market can leverage on that as investment opportunity is open to Nigerians and the 30 per cent allocated to capital project in the budget is also good.
