Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator, has established a Nigerian Capital Market Development Fund (NCMDF) to foster the development of the capital market through promotion of innovative products, inclusive participation and investor education.
Speaking at the inauguration of the board of NCMDF in Abuja, former chairman of the board of SEC and former Director General of SEC, Dr. Suleyman Ndanusa commended SEC on its efforts at discharging its primary mandate of regulating and developing the Nigerian capital market particularly in the area of investor protection.
Ndanusa noted that the apex regulatory organization in recent times has been unrelenting in its efforts at implementing numerous initiatives aimed at developing the market.
He highlighted some of the initiatives to include the launch of the National Investor Protection Fund, a trust scheme established to compensate investors who incurred losses arriving from insolvency and bankruptcy as well as dematerialization of share certificate, direct cash settlement system, and the on-going e-dividend registration.
Ndanusa said the primary focus of NCMDF is to fund relevant market development initiatives that will spur growth of the market and the Nigerian economy.
According to him, the fund seeks to facilitate the introduction of proper understanding of new products to deepen the market, provide capacity building to tackle emerging challenges and create an industry wide synergy through partnership with government and non governmental agencies and corporate bodies with similar objectives.
He noted that considering the dynamic nature of the global economic system particularly the financial sector, regulators worldwide continue to seek relevant initiative to create opportunities and tackle emerging challenges.
“The lunching of the Nigerian Capita Market Development Board is therefore expected to contribute greatly towards the developmental efforts of the SEC to grow the market, enhance financial inclusion and regulatory visibility. I am glad to note that the board members chosen have impressive pedigree and were selected on account of their proven integrity, wealth of experience and unrelenting contributions towards the development of the Nigerian capital market,” Ndanusa said.
In his remarks, Director General, Securities and Exchange Commission (SEC), Mounir Gwarzo said the NCMDF was part of the Commission’s mandate to deepen the market and enhance the socio economic development of the country.
He noted that SEC developed the 10-year Capital Market Master Plan (CMMP) as a blueprint for the development of a vibrant capital market in Nigeria, adding that the Commission has been putting all its energy, resources and time into implementing the master plan.
“The Commission has provided the initial takeoff grant for the Fund but going forward the entire capital market community should come together to discuss details of how we can all contribute to the continued funding for this critical market vehicle. The board appointment is a call to service as a crucial enabler in the industry which will require total commitment and dedication of the highest standards, attributes which I am confident that the board members epitomize individually and collectively. The Commission has played its part and will continue to take its market development mandate with all seriousness. We shall ensure that the fund immediately gets down to the important business of facilitating capital market development in accordance with the rules guiding its operation,” Gwarzo said.
The NCMDF was incorporated on August 7, 2017 and the composition of the board was approved by the Minister of Finance, Kemi Adeosun on October 9, 2017. Members of the board include Mounir Gwarzo – Chaiman, Non executive Commissioner of SEC – Vice Chairman, Executive Commissioner of SEC, Mrs Olubunmi Siyanbola – Director, Home Finance, Ministry of Finance; Dr. Faruk Umar – Chairman, Association for the Advancement of the Rights of Nigerian Shareholders; Mr. Sunny Nwosu – Independent Shareholders Association of Nigeria, Mr. Bayo Olugbemi – President, Institute of Capital Market Registrars – Represented by Walter Oghogho and Ify Ejeizie – Association of Stock Broking Houses of Nigeria.
The Nation Newspaper October 31st, 2017.