21 January 2015, Abuja – The Securities and Exchange Commission said on Wednesday that it would step up its investor education program to enable it encourage local investors to become active participants in the Nigerian capital market.
The Acting Director General, SEC, Mr Mounir Gwarzo stated this while addressing journalists shorty after a meeting with leadership of the Chartered Institute of StockBrokers, and the Association of StockBroking Houses of Nigeria.
The meeting which was was held at the commission’s headquarters in Abuja centred on how to reposition the capital market to enable it play an expanded role in driving development across the financial system and the economy.
The CIS delegation was led by the President and Chairman of its Governing Council, Mr Albert Okumagba while the ASHON delegation was led by the Chairman Mr. Emeka Madubuike.
The Nigerian Stock Exchange ended 2014 as one of the worst performing exchanges as the market capitalisation of the listed equities fell by N1.749tn from N13.226tn at the start of the year to N11.477tn.
This is despite the listing of companies such which added billions of naira to the market capitalisation.
But Gwarzo said the commission would continue to collaborate with all stakeholders in the sector to broaden the market in a way that would galvanize the needed resources to bridge the funding gaps in the economy.
This, he added, could only be achieved with strong regulatory and investor education program which would help return the market to the path of growth.
Gwarzo said, “You can’t have a very vibrant market without a very strong regulator and you also cannot have a vibrant market without fit and proper operator in the market.
“One of the things that we want to develop is domestic investment both from retail and from institutional investors and we want to step up our investment education programs.
“We will be collaborating with both the trade associations and the Self Regulatory Organisations so that we will be able to reach out to the market. We believe that by the time we do so the level of investment in the capital market from the domestic side will go up.”
Madubuike who also spoke shortly after the meeting described the level of participation of local investors in the capital market as low with just three million Nigerians.
– The Punch