The Securities and Exchange Commission (SEC) has restated the vital role the capital market plays in the development of any country through the provision of long-term funds for infrastructure development among others.
Director-General of SEC, Lamido Yuguda, stated this when a team from the Nigerian Economic Summit Group (NESG) visited the commission in Abuja recently, to collaborate with the SEC on the development of the economy.
The SEC boss said that the capital market can actually do more in the areas of provision of necessary infrastructure for the country in a bid to support the government in its developmental efforts.
“Our collective economic power is bigger than the government and in many countries, the capital market actually funds the government. When you save, the finance is used to create economic value that actually enhances living and this translates to a win-win.” While stressing the need for collaboration with the NESG, he said both organisations could do more for the economic development of the country, he said: “You get financial returns and also utility from the investment and this is actually achievable.
“On the capital market, it is a welcome development that we are talking with the NESG for there is something that really needs to happen in this country. When you look at our policy environment, in many areas it is not conducive for the return of capital to investors and we are working hard to tackle this.”
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He noted that the telecommunications companies are successful because no one is getting the service for free as everyone pays to add: “We all pay for the services, no one gets the services for free, but when we move on our roads, we say we don’t want to pay for it. In other countries, people pay for their roads and they are happy doing so because the roads are good.
“We need to collaborate with a group like NESG. Once we are able to put things right, investors will be willing to put in money and there will be returns.”
Speaking, Chief Executive Officer of NESG, Laoye Jaiyeola, who expressed concern that the banking sector was being overstressed, urged the Federal Government and corporate organisations to look towards the capital market for their funding needs.
Jaiyeola stated that transactions could be restructured to raise bonds, bills and all the things that would fund whatever is needed to be funded without going through the banks.
He said: “The securities market needs to take the bull by the horn otherwise, we are going to be in perpetual debts as a nation and that will not help us. That is one of the reasons we are advocating an Investments and Securities Act that will ensure that the needed funding for development in Nigeria is given priority and then we can fund Nigeria for a long term.
“The short term funding cannot help us and so, we need to begin to move to the long-term. We are passionate about it and we need to raise funds for the needed development funding in Nigeria.”
