Peter Egwuatu & Nkiruka Nnorom
In its determination to develop and
strengthen the Nigerian capital market, the Securities and Exchange Commission,
SEC has pledged to deepen retail investors’ participation in the market.
Unlike the Stock market, Forex
trading is Online
Ag. Director General of the commission,
Mr. Mounir Gwarzo, assured Nigerians that the SEC will continue to ensure that
the market remains vibrant in order to attract investors both locally and
internationally.
Gwarzo gave the assurance when he
received members of the Chartered Institute of Stockbrokers (CIS), who visited
him in the commission’s headquarters in Abuja.
He said the current management will
strive to develop domestic investment from retail and institutional investors
He said “We will step up to reach
out to the market and improve investment. On the international side, what is
most important is the enabling environment. Right now, the rules are very
friendly and that is why we keep changing them from time to time to suit best
practices and attract investors.
Earlier in his remarks, President
and Chairman of the Governing Council of the Institute, Mr. Albert Okumagba,
lamented the over 60 percent control of the Nigerian stock market by foreign
investors.
Okumagba said the current situation
were over 60 percent of the market is controlled by foreign investors gives
serious cause for concern.
He said: “The level of participation
of our locals is effectively less than three million when ideally over 80
million of our people should be in the market.
“Our coverage of insurance assets in
Nigeria is not up to two percent of insurable asset. If we can increase from
two to 20 percent and then to 50 percent, we will be shocked at the kind of
contribution that insurance can make.”
Okumagba further disclosed that for
pension, coverage is about eight percent, noting that if Nigerians that are
supposed to be captured by the pension reform act come on stream, we can do
multiples of what has been recorded.
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