The Securities and Exchange Commission (SEC), at the weekend, backed the Nigerian Exchange Limited (NGX)’s proposed plan to have dollar asset listings on the nation’s bourse, stating that it presents an opportunity for inflows into the economy.
Director-General, SEC, Lamido Yuguda stated this during the commission’s second Capital Market Committee (CMC) briefing which was monitored by Daily Sun via Zoom.
Whilst expressing concerns over the spate of de-listings in the capital market, stated that the NGX’s proposed plan is good for the market and added that advocacy initiatives were underway to address hurdles related to issuances and to motivate prospective issuers to consider market-based funding options. Emphasizing the significance of this matter, he affirmed that the SEC actively collaborates with the Exchanges (NGX and FMDQ) to enhance approval procedures, aiming to render listing processes more streamlined, more efficient, and economically viable.
Yuguda however stated that he was rather concerned as to whether firms can meet the repayment period. “I do not have or see any problem with dollar denominated bonds listed in the capital market. What matters to me is whether these firms can meet the repayment period. It is good that we are thinking in this direction.
The future of Nigeria is great and there is a need to harness the capital market to fund major infrastructures in the economy. If we meet the necessary objectives, then we can confront demographic challenges and of course the FX issues”, he said.
Noting that unclaimed dividends (currently standing at N190 billion) is still a recurring problem in the market, Yuguda revealed that the SEC is working with Nigeria Inter-Bank Settlement System (NIBSS) on the e-dividend portal which is currently undergoing upgrading and data repairs.
Also speaking, the Commissioner, Operations at SEC, Dayo Obisan, said that one of the major issues bedeviling the commission is beneficiaries getting access to claim their dividends.
Obisan said, “We keep putting our efforts to ensure that investors update their bank details, information and claim their dividends. But we still have some of them who fill in details wrongly. We at SEC are working very hard and we want to ensure bonuses get transferred to beneficiaries, capture everyone who is in the market so that our data is more robust and we can be able to work effectively on reducing unclaimed dividends”.
SOURCE: THESUN
