Rapid growth, major challenge for capital market –SEC

The rapid growth being witnessed in the Nigerian capital market was a major challenge that regulators of the market are grappling with, the Director-General, Securities and Exchange Commission, Alhaji Musa Al-Faki, has said.

A statement obtained by our correspondent on Wednesday, said the SEC boss made the observation at the inauguration of the commission’s board on Tuesday.

The significant growth recorded by the capital market, analysts said, had overwhelmed both operators and regulators of the market.

This, they alleged, had resulted in deficiencies in the system.

According to Al-faki, the capacity of the capital market to provide the funding needs for investors, as demonstrated by the various public offers that had taken place in the market, strengthens their argument.

He added, “Its international profile as a good destination for foreign investments and a credible platform for global players has been on the increase.

“The commission in this regard is pursuing, as a matter of urgency, the implementation of policies that will enhance market efficiency, transparency as well as the capacity of operators and regulators.

“Ultimately, the target is to sufficiently mobilise funds for infrastructure and financing in the economy.”

The director-general assured that the new board would expedite the process of addressing these challenges.

He reiterated that there were plans underway to further reduce the cost of doing business in the capital market.

“This, among others, will encourage greater flow of both local and foreign investments. As in the previous exercise in 2007, all stakeholders will be carried along, as only an across board review will bring the desired positive impact,” he explained.—Punch