For the nation’s capital market to achieve the desired growth and play its capital formation role in the Nigerian economy, there must be a synergy among the regulators in the financial sector.
Group Chief Executive Officer, UBA Capital Plc, Mrs. Oluwatoyin Sanni, stated this at the weekend at the annual workshop of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos.
Speaking on the topic, “Sustaining Capital Market Recovery,” Sanni said there must be a regulatory synergy among the different arms of financial markets and industry regulators to avoid another crash of the nation’s capital market.
According to her, the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange(NSE), the Central Bank of Nigeria (CBN)and Pension Commission(PenCom) should work together for market development and sustainability.
She explained that the regulatory synergy was imperative for sustained market development and prevention of regulatory lapses experienced in the past.
She added that there is the need for development of world-class infrastructure and introduction of risk management system by all market operators to ensure stable capital market growth and development.
She said capital market stakeholders must take steps to develop, grow and resuscitate the Nigerian capital market, and suggested that the Pension Fund Administrators (PFAs) investment guidelines must be updated to ensure full utilisation of the capital market.
In his goodwill message at the workshop, the Chief Executive Officer of NSE, Mr. Oscar Onyema, said to enable the market sustain the momentum it has recently experienced, the successful implementation of medium- to long-term strategic initiatives remain a key priority.
“Both SEC and NSE have played critical roles to continue to support the Nigerian capital market, enabling it to build upon its strengths and ensuring Nigeria is an attractive market,” he said.
Onyema, who spoke the Head, Corporate Services Division, NSE, Mr. Bola Adeeko, noted that following the 2008 global financial crisis, the Federal Government of Nigeria, in conjunction with the NSE, CBN and SEC embarked upon several key initiatives to ensure the Nigerian capital market, and the over-arching financial market, emerged stronger and more resilient.
“The focus of this transformation was to strengthen the regulatory framework to ensure a safe investment destination for both local and foreign investors, while establishing a favourable business environment for companies to thrive in. With immense support from capital market participants and various agencies in Nigeria, the NSE has made great strides in its transformation journey which has brought about major review of our governance, market structure and operations thereby resulting in a stronger regulatory environment, and the implementation of innovations required for delivering a robust and efficient capital market,” he said.