The Director-General, Securities and Exchange Commission (SEC), Ms Arunma Oteh, has disclosed that N655.2 trillion ($3.9trillion) will be required to fix the deficit infrastructure in the next 30 years as SEC Nigeria launches a 10-year Capital Market Master Plan.
Ms Oteh, speaking during the launching of the master plan at the just concluded 4th Capital Market Committee retreat in Abuja, stated that if the policy actions in the master plan were vigorously pursued, the Nigerian capital market would be in the position to generate the $3.9 trillion needed to meet the infrastructure deficit in the next 30 years. “We want a bond market that will enable us to meet the infrastructure deficit estimated at USD3.9 trillion over the next 30 years. We want a market that does more for housing finance, enabling Nigeria close down the 17 million housing unit deficit while supporting entrepreneurship by doing more for SMEs and start ups. We want a capital market that combines all the elements needed to support Nigeria to actualize its aspirations of peace and prosperity for all citizens,” she said. Before assuming office, the SEC boss disclosed that the stock market in 2003 had total capitalization of only N1.4 trillion which grew 7 fold to N10.2 trillion by 2007 and peaked at N12.65 trillion by March 2008.
However, she said this was a highly concentrated market where 15 of the 20 most capitalized companies were banks, together accounting for almost 60 per cent of market capitalization. “There was subsequently a painful unprecedented market correction in which the market lost about 70 per cent of its value. This experience decimated investors’ confidence and contributed to systemic banking crisis on the heels of the global financial crisis,” she stated. On her assumption in office, Ms Oteh said her first task was to ensure that investor confidence is restored, adopting a posture of zero tolerance to wrongdoing while strengthening SEC enforcement machinery through partnerships with the Office of the Attorney-General of the Federation and the Nigeria Police Force.
According to her, “We instituted legal proceedings against over 260 individuals and entities for various forms of market infractions seeking to disgorge all illegally gotten wealth and restitute investors. We have revamped our investor protection and dispute resolution mechanism by strengthening the SEC’s quasi-judicial Administrative Proceedings Committee (APC), developing a robust complaint management framework, setting up the National Investor Protection Fund and strengthening Anti-Money Laundering and Counter Terrorism Financing (AML/CFT) framework.”
She added that “we have invigorated our rule-making, ensured adherence to the principles of securities regulation as espoused by members of the International Organization of Securities Commission (IOSCO) in which we are a leading member. We have also enhanced market transparency through implementation of global best practice in corporate governance and financial reporting, issuing a new Code of Corporate Governance and supporting the adoption of the International Financial Reporting.”
