The Nation Newspaper

Tag: compliance

  • Institute harps on ethical compliance by inductees

    The Chartered Institute of Purchasing & Supply Management of Nigeria (CIPSMN) has urged its latest graduands to adhere to professional and ethical standards in their conduct.

    Its President, Diekola Oyewo, said purchase and supply managers have critical roles to play in entrenching a non-corrupt business climate.

    Oyewo, who spoke at the send off for 43 graduates in Lagos, admonished them to protect their employer’s interest, give suppliers equal treatment and avoid bringing disrepute to the professional body.

    He implored the government to take advantage of the Institute’s resources by recruiting professionals tied to credible institutions.

    He said: “Professionalism and ethics are Siamese twins. Any attempt to separate them is sure to bring disrepute not only to the offenders, but also to the employers, the nation at large and the offenders’ nucleus families.”

    Oyewo reminded them that as professionals, they will be entrusted with huge sums of money for making purchases and that there is the likelihood that pressure will be mounted on them.

    “You must contend with various aspect of ethical conduct that relates to the procurement role from differing stand points. The inductees today have moved from student membership to graduands. Though they are qualified, we want them to reflect what they have learnt,” he said.

    Speaking on the theme “Procurement & supply chain management in Nigeria: The past, present and issues for policy consideration”, the keynote speaker, Mr. Muhammed Aliyu, urged the government to be proactive by planning ahead of challenges before anticipating solutions.

    “Why should the government wait for problems before running from pillar to post?”, he asked, noting that it is when economic conditions seem to be at their worst that people tend to come together to discuss what could be done.

    Aliyu pointed out that commerce is rapidly changing the way operations management and organisations do business. “Procurement and supply chain management has become crucial part of the process as demand becomes more specialised,” he said.

  • Adeosun, G24 discuss tax revenues, compliance

    Adeosun, G24 discuss tax revenues, compliance

    Boosting tax revenues and compliance to drive sustainable economic development in Nigeria is featuring prominently in Finance Minister  Kemi Adeosun’s discussions  with fellow finance ministers in the G24 Group at the ongoing International Monetary Fund (IMF)/ World Bank Spring Meetings in Washington D.C.

    She said at the forum that revenue mobilisation is critical to the success of the nation’s economic reform agenda.

    “We have an unacceptably low level of non-oil revenue, and much of that is driven by a failure to collect tax revenues,” she said.

    “With a tax to the Gross Domestic Product ratio of only six per cent, one of the lowest levels in the world, we have a lot of work to do, if we are going to build a sustainable revenue base that will deliver inclusive growth.

    “Our data gathering programme over the last year has now given us the tools we need to be more aggressive at pursuing tax avoiders, both domestically and abroad.”

    Adeosun pointed out that just as some of her contemporaries in the G24 have done successfully in their countries, Nigeria is focusing  on tax in 2017 through an asset and income declaration scheme to address its low tax revenue collection and ensure improved compliance, a broader tax base and more sustainable revenue.

    The minister also stressed the need for strong budget implementation and transparency to create trust and accountability in government, saying: “While we focus on raising revenues and bringing people into the tax system, we must be equally aggressive in our approach to budget implementation and transparency.

    “Our people must know where their hard-earned tax contributions are being spent and the impact that they are having on national development and the daily lives of citizens. This will be a core focus for us.”

    The minister met separately with the ratings agencies Moody’s and Fitch to update them on progress towards economic reform objectives, and with the World Bank country team to discuss the status of ongoing projects in Nigeria and the pipeline of projects for 2018.

    She is due to attend meetings on closing the financing gap for water, affordable housing finance, food security and nutrition in the coming days as part of government’s focus on sustainable solutions to some of Nigeria’s most pressing social challenges.

  • CPC affirms Fanta’s and Sprite’s compliance with Benzoic standards

    Independent laboratory analyses and investigations carried out by the Consumer Protection Council (CPC) have confirmed that Fanta and Sprite are fit for human consumption and within the Nigerian Industrial Standards (NIS) limits of benzoic acid and sunset yellow.

    Making this disclosure recently at a news conference at the Council’s Abuja Headquarters, the Director General, of the Consumer Protection Council, Mrs. Dupe Atoki, said that the levels of two additives, benzoic acid and sunset yellow, which raised public apprehension in the consumption of soft drinks because of the action at the Lagos High Court have been confirmed through laboratory analysis to be within the Nigerian Industrial Standards (NIS) limits.

    She disclosed that National Agency for Food, Drug Administration Control, NAFDAC, and Standard Organisations of Nigeria, SON, have been informed about the outcome of the investigation, and that the Council has also recommended regulatory action and review of the ”benzoic acid limits in soft drinks as the current standard, which has been in existence since 2008 is overdue for review,” particularly with the requirement for reviews pegged for every five years.

    The Director General explained that because of the high level of benzoic acid found in isolated cases of Mirinda and Lucozade tested, the Council has called for further regulatory investigative analysis, action and review in the levels of the additive in the products.

    On sunset yellow, she pointed out that the Council has also recommended “regulatory action for a review of the standard as some countries have already reduced the approved limit, while some have labelling requirements for its use, and some others have adopted its outright ban.”

  • Recall of sacked workers: PENGASSAN canvasses firms’ compliance

    Recall of sacked workers: PENGASSAN canvasses firms’ compliance

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government to take measures against agencies and oil companies that behave as if they are more powerful than the government and not answerable to it.

    Recently, the Minister of Labour and Employment, Dr Chris Ngige, met with oil firms and an agreement was reached not to sack their workers and  to recall sacked workers in the oil sector.

    According to PENGASSAN, some of the oil firms reneged on the agreement.

    Speaking at the Third Women in PENGASSAN National Conference in Abuja,  PENGASSAN President, Comrade Francis Olabode Johnson  said such attitude was not acceptable to the union.

    He said: “We have been having a series of meetings with the government team. You cannot have an agreement with the minister standing in for the President of the Federal Republic and when it’s time to take action, you say no. We, only suspended our strike. If these issues are not addressed properly, we may have to resume the strike.

    “But we don’t like taking that route. That is why we are imploring every agency of the government that whatever agreement reached must be respected. We will abide by our side of the agreement, but if they are not ready to honour theirs, we will have no choice than to resume our suspended strike.’’

    “We had an understanding, but today what we are hearing is that some of them are reneging, especially Fugro Nig Ltd. I must be specific here. They are reneging. If the minister, who is standing in for Mr. President, took a decision and they are reneging, that is an affront on the President of Nigeria. If you know you have no respect for the President, then you pack your things and get out of the country.’’

    Johnson also said the leadership of PENGASSAN would meet with the Federal Government over the threat by the Niger Delta Avengers to kill oil workers, warning that the group’s threat should not be taken lightly by the government.

    “We are having a meeting with the Minister of Labour and Employment. In view of the issue on ground, this is something we should take as priority. Whatever the issue, let government look for a way to fast track everything and discuss so that there can be peace in this country.

    “This is not time for us to start destroying ourselves and our properties and oil installations. We all need to work together as a country so that Nigeria can rise from the ashes of what we are going through,” Olabode said.

  • Reps warn Samsung, others on local content compliance

    House of Representatives’ Committee on Local Content has warned international oil and gas services companies, including Samsung Heavy Industries (SHI) of South Korea against flouting the Nigerian Local Content laws.

    The committee said it strongly opposed a situation where foreign oil firms and their cohorts exceed expatriate quota and breaking other rules that are contained in the Nigerian Content Act, adding that it would not allow any infractions on the Act to go unpunished.

    The Committee’s Chairman, Hon Emmanuel Ekon, while speaking on the sideline of tour of LADOL Free Trade Zone in Lagos by the committee, said no efforts would be spared on ensuring that foreign-owned firms comply with all known local content rules in Nigeria.

    He said the committee would sanction any non-compliant firm irrespective of its investments in the country.

    Ekon said: “The fact that Samsung partner LADOL to build multi-billion dollar Total Egina Floating Production, Storage and Offloading (FPSO) vessel in Nigeria does not confer on it the right to violate the laws of the land. The committee is not out to witch-hunt any firm, but it was only doing its job of implementing laws for the growth of country.”

    According to him, monopoly is the bane of the Nigerian economy, adding that local operators in the petroleum industry have shown that they cannot be put aside by their foreign counterparts. Ekon said the committee would use its legislative instruments to protect indigenous operators in the oil sector and others.

    “The indigenous companies have shown that they have the capacity to grow the economy. LADOL is one of such firms. The company has demonstrated faith in Nigeria by investing over $600million in the country. Besides, LADOL has built a fabrication yard of its zone. The yard has employed 2,500 jobs and helped in developing skills.  The major goal of LADOL is to provide 50,000 direct and indirect jobs and the firm is working hard to achieve this. That is why stakeholders must join forces together to support LADOL and other companies that have shown the desire to promote the nation’s economy,” he added.

    He berated Nigerians, who have lots of money in banks abroad because they help in promoting foreign economies to the detriment of Nigeria.

    Also, the acting Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Daziba Patrick Obah, urged local investors to invest in Nigeria, stressing that they stand to gain a lot by doing so. He said with the local content law, indigenous firms are sure of getting good returns on investment.

    Obah said: “The Board, the House of Representatives Committee on Local Content and other relevant stakeholders are out to promote indigenous investment.  We would do all we can to support local operators with a view to developing the nation’s economy.  The Board, for instance, has taken a decision to open office in LADOL base. It is part of efforts to promote local content,” he said.

    The Managing Director of Lagos Offshore Logistics (LADOL), Dr. Amy Jadesimi said the ongoing  Egina  FPSO project and others in the zone, are undertaken by LADOL and its partners in order to make Nigeria oil and gas hub in West Africa and Africa.

  • Cost of environmental compliance high, says MAN

    Cost of environmental compliance high, says MAN

    The Manufacturers Association of Nigeria (MAN) on Wednesday lamented that the cost of being environmentally compliant is high and has continued to generate serious concern for manufacturers.

    The Association, therefore, called on the government to harmonise the functions of the various environmental regulatory agencies, with a view to reducing the cost of compliance.

    The Chairman, MAN, Apapa branch, Mr. Babatunde Odunayo, made this known while delivering his address at the 7th edition of the Mandatory Environmental Seminar held in Lagos.

    The seminar was organised by MAN, Apapa branch, as part of its advisory services aimed at eliciting voluntary compliance by member-companies to globally accepted environmental standards and the Nigeria environmental laws.

    At the seminar with the theme ‘Constructive Engagement of the Nigerian Manufacturers Towards Sustainable, Clean and Safe Environment,’ Odunayo said because of the high cost of environmental compliance, manufacturers have long been requesting the harmonisation of the functions of the regulatory agencies.

    He, however, expressed regrets that such request has so far remained “a cry yet to be heard.” He said rather than yield to the Association’s request, the regulatory agencies continued to inundate manufacturers with “unimaginable demands, with very stringent imposition of fines for failure to comply.”

    Odunayo said: “We have to contend with the Federal agency, the National Environmental Standards and Regulations Enforcement Agency (NESREA), Standards Organisation of Nigeria (SON), National Agency for Food, Drug Administration and Control (NAFDAC), Lagos State Environmental Protection Agency (LASEPA) and Lagos State Waste Management Authority (LAWMA).”

    He added that local government councils also have environmental and health inspectorate departments. “There are too many interventions for the same objective,” Odunayo pointed out. He said the way forward is to chart a path towards a progressive, but non-oppressive disposition in managing environmental compliance issues with the manufacturing sector.

    The MAN chief however, said in the face of aggressive intervention by state and federal government agencies, the Association has continued to provide value-added advisory services to member-companies in order to provide relief and comfort to helpless manufacturers.

    He stated that the seminar cum workshop provides a veritable platform for having a collaborative engagement with the environmental regulatory agencies. “This year’s edition is happening at a time when we just concluded our Best Kept Environmental Premises Inspection Competition (BKIPC),” he stated.

    According to him, the programme was established seven years ago by the branch to encourage members’ compliance to health, safety and environmental regulations and also monitor yearly, their environmental consciousness thus, encouraging the improvement of quality control of business processes.

    “Also, the intended impact of this seminar was to further underscore the importance the Association attaches to issues of environmental sanitation, pollution and to public private engagement,” he added.

    The Lagos Commissioner for Environment, Dr. Samuel Babatunde Adejare, encouraged manufacturers to endeavour to protect their environment. “Environment is life: if there is no environment, there is no life,” he said, urging companies who cut corners during factory inspections to have a change of attitude.

  • Digitalisation: Broadcasters strategise on compliance

    Digitalisation: Broadcasters strategise on compliance

    A head of the compulsory switch to digital broadcasting, the Southwest zone of the Broadcasting Organisation of Nigeria (BON), yesterday called on its members to sharpen their skills in new technologies and computer to remain relevant in the new broadcasting regime.

    The charge dominated discussions at the Southwest zone meeting of the organisation, hosted by Lagos state Television (LTV8), in Agidingbi, Lagos.

    The immediate past Zonal Chairman, Alhaji Ayinde Soaga, said digitisation and re-equipment have been the biggest challenges facing BON members, urging members to face digital age realities which have become the vogue in broadcasting all over the world.

    Explaining further, the Executive Secretary of BON, Mr. Segun Olaleye, said the idea of digitisation came up as a result of the emerging trend in technology, adding that when full digitisation commences, many of the stations would be compressed into channels.

    Olaleye said: “We need to strategize to become relevant in the broadcasting of the future. When the policy begins, no station will own a transmitter and everybody will have to broadcast through a signal distributor and everyone will be on a single platform. What will be important in that era will be the content you have to sell.”

    Speaking further, the BON scribe said the digitisation process will involve all Nigerians buying a sector box and all stations as currently constituted will become a channel on a decoder.

    Olaleye said stations will have to specialise and distinguish themselves because of the competition that will follow.

    He said: “I keep telling our members that the issue now is no longer competition but cooperation. There are things we can learn together now; the time for competition is still coming; but this is the time to prepare.

    “You must imbibe technology; if you are not computer literate you don’t have a business in broadcasting. The technology will keep changing and we must adapt to it and keep abreast of it. That is the television of the future,” Olaleye said.

    The Lagos State Commissioner for Information and Strategy, Mr. Steve Ayorinde, tasked media practitioners to be prepared for the directive from the Federal Government to all media organisations to migrate from the analogue way of broadcasting to digital.

    Ayorinde, who was represented by his Permanent Secretary, Mr.  Fola Adeyemi, said broadcasters should leverage on the multimedia nature of the television as against the print media to gain public confidence.

    His words: “The public will believe you than they will believe your print contemporaries because of the advantage of hearing voices and seeing the faces of those who speak the words that the print media writes. Your power of immediacy also ensures that you reach the mass of the people faster than the print.”

    The broadcasters also identified loss of revenue from advertising and drastic cut in jobs when the digitisation policy commences.

     

    According to the General Manager, LTV, Mr. Deji Balogun, the threat of digitisation calls for new thinking on the part of practitioners on how to protect themselves.

    Another broadcaster, Lemi Olalemi said BON should be proactive in order to make money.

    “We need to wake up and talk to people in the language they speak to each other which is online. We need to key into the social media phenomenon and take hold of the opportunities there to make money.” he said.

     

  • Value added tax (VAT) & voluntary compliance

    Value added tax (VAT) & voluntary compliance

    The operation of the tax law is universally administered. Every person (corporate or individual) is a taxable entity no matter how, when and what method is used to conduct the business.

    The Federal Inland Revenue Service (FIRS) has adequate mechanisms to assess and bring all taxable entities into the tax net. Among these methods is cordial dialogues with stakeholders during enlightenment drives   to achieve mutual understanding and promote voluntary compliance.

     

    Registration by Taxable Persons

    Section 8(q) of the Federal Inland Revenue Service Establishment Act, 2007, directs the Service to issue a taxpayer identification number to every taxable person in Nigeria in collaboration with State Boards of Internal Revenue and the Local Government Revenue Boards. Section 8(1) of the Value Added Tax Act (VATA) Cap V1 LFN, 2004 as amended in 2007 also requires taxpayers (individuals, enterprises or corporates) to register for VAT.

    However, when the tax identification number (TIN) is generated, it suffices and covers all the tax types as no other registration number for any tax type will be required.

    Reference to Section 8(1) of the VATA as amended, it is specifically stated that “A taxable person shall, within six months of the commencement of the Act or within six months of the commencement of business, whichever is earlier, register with the Board for the purpose of the tax (VAT).”

    The phrase whichever is earlier, that specifies the time for registration, has caused a lot of pain for taxpayers in VAT administration. It is not practical to expect that a business just recently incorporated (say in 2011) to have registered in 1994 for the purpose of the tax. Hence, a business incorporated after 1994 is expected to register within six months of the commencement of business.

    Therefore, penalties (and other sanctions) for late registration for VAT would start counting immediately after the six months of commencement of business if the taxpayer fails to register for VAT and not six months from the commencement of the VAT Act when the business was probably not in existence.

     

    Historical Antecedents of VAT

    • VAT was first introduced as consumption tax in 1919 in Germany, France (1954), UK 1973 etc.
    • Introduction was occasioned by the impacts of 1stand 2ndWorld Wars.
    • The adverse effects of direct taxation on the economy, individuals and businesses.
    • The introduction of consumption tax was later modernized into VAT.
    • The high point of VAT is that it has no noticeable impact on the taxpayer because of its indirect nature.

    VATable Income

    In arriving at what constitutes a VATable income, all income from sales, rentals, charges and fees relating to activities enjoyed by customers are VATable and should be charged with VAT. The law did not make provision for any activities or services that is non-VATable in the industry.

     

    First Schedule of the Act stated Goods and Services Exempt from VAT in Nigeria.

    The implication of the schedule is that any other business activity in the form of buying and selling or rendering of services or enjoying any rights which are not stated in the schedule are liable to VAT.

     

    Duration of Remittance

    All VAT charges should be remitted to an FIRS office within 21 days in arrears on a prescribed form 002. This is supported by Section 15 of the Act.

    Meanwhile, a taxable person who does not remit the tax within the time specified above, will be liable to 5%  penalty and interest at commercial rate, added to the tax and the provision relating to collection and recovery of the unremitted tax, penalty and interest shall be employed.

    Similarly, a taxable person who fails to collect tax is to pay 150% of the amount not collected plus 5% interest above the Central Bank of Nigeria rediscount rate.

     

    Concept of Voluntary Compliance

    FIRS encourages voluntary compliance instead of the use of coercion. Tax compliance relates to the degree to which a taxpayer complies (or fails to comply) with the tax rules of a country, for instance, by declaring income, filing returns and paying the tax due on or before the due date.

    Voluntary tax compliance is a situation where a taxable person or entity files returns without the tax authority resorting to using the instruments of the law and force to ensure compliance.

    It is voluntary when a taxable person discharges the statutory obligation of tax payment on self-conviction and as a call to duty without notice or reminder within the time line allowed by law.

     

    FIRS’ Means of Enhancing Voluntary

    Compliance

    • Through education and sensitization of operators.
    • Business owners should have open an mind and seek clearance from FIRS when in doubt and seek further legal advice when not satisfied.
    • Regular monitoring/audit visitations to check compliance and enlighten taxable entities on their roles and responsibilities.
    • FIRS ensures that the principle of know your tax payer (KYTP) is adhered to, so that it would be easy for taxpayers to reach schedule officers for information and guidance/assistance.
    • Regular provision of VAT forms 002 for monthly rendition of returns.
    • Encourage voluntary compliance to avoid infraction of the law.
    • Consistency and civil enforcement of the provisions of the tax law
    • Imposition of interest and penalties and enforce compliance where default occurs.
    • Improvement in the work process of the tax office to make compliance easier.
    • Compliance with the Taxpayer Identification Number requirements by business owners.
    • Monthly rendition of returns and payments on or before 21stof each month in arrears, to the nearest FIRS office.
    • Proper documentation and record keeping of VAT charges taken at source, returns and payments vi-a-vis correct profiling of income sources.
    • Businesses should note that they are not the party suffering the VAT, but a mere agent of collection and remittance.
    • It is better to charge wrongly and remit to FIRS, than not to charge at all, because when the actual liability is established, it is owner of the business that would bear the entire burden.

     

    Consequences of Non-Compliance

    • Out of the entire VAT Act, of 47 sections, about one third of the provisions are on offences and penalties.
    • Statute based consequences are highlighted from section 25 to 37 of VAT Act Cap VI, 2004 as amended in 2007. Some examples of offences and penalties are: failure to submit returns attract a fine of N5,000 for each month the failure continues.
    • Failure to collect tax attracts penalties of 150% of the amount not collected plus 5% interest above CBN rate.
    • VAT evasion attracts N30,000 or twice the amount of tax evaded whichever is greater or imprisonment for a term not exceeding 3 years.
    • Failure to keep proper records of accounts would attract N2,000 fine for every month the failure continues.
    • Failure to issue tax invoice attracts fine of 50% of the cost of goods and services for which an invoice was not issued.
    • Offences by body corporate: Every officer, manager, secretary and other similar officer including partner in partnership shall be severely guilty of an offence under the act, etc.

     

    Reputational Implication

    • Second categories of consequences of non-compliance are reputational and reporting risks. Apart from reputational damage arising from actions by FIRS to enforce compliance via distrain, search and seizure, and litigation, amongst others.
    • Reporting risk involves the imposition of interest and penalties.
    • All the interest and penalties imposed on any of the aforementioned offences would be enforced.

    FIRS tries to avoid enforcing compliance because of the Service’s slogan, “Taxpayers are King” except on recalcitrant taxpayers. It is necessary to once again emphasize that nightclub and event center activities are not exempted from VAT.

    Consequently, taxpayers are encouraged to embrace voluntary compliance since the consequences of non-compliance are enormous; ranging from statute based sanctions to reputational damage/reporting risk.

     

     

     

     

  • ‘Regulatory compliance needs enforcement’

    ‘Regulatory compliance needs enforcement’

    A Lagos-based lawyer, Mr Msoo Dio, has called for better enforcement of regulatory requirements in the consumer goods sector to improve compliance.

    He said despite the government’s efforts at enforcement, issues of non-compliance persist.

    “The government is trying in the area of regulation. Unfortunately, there are issues of non-compliance. People still bypass these regulations,” he said.

    Dio spoke in Lagos after his firm, Msoo Dio & Co, announced its partnership with CISF Private Solutions Ltd, Lisbon, Portugal, at a meeting with the company’s Chief Operating Officer (COO) Samuel Piers, who represented its Chief Executive Officer, Estevao Bernadino Auguusto.

    The commercial law firm, which also practices in the area of sale and carriage of goods, will provide legal services to the Portuguese exporting company which is seeking to enter the Nigerian market.

    It will, among others, advise CISF on regulatory requirements for its range of wine and olive oil imports and distribution.

    “Our role will be to oversee the regulatory issues involving the products, services and goods that will be exported by CISF into Nigeria. Our role will extend to promoting those products and services to the needed buyers and consumers. We’ll oversee issues of advertisement, trademark, and the competition.

    “As their agents, we’ll will get the buyers and advise the company on service providers. The company’s CEO is an actively practicing lawyer too. Our knowledge of business brought us together. The main issues that drive some of these businesses are within the core areas of commercial law, such as trademarks and regulatory compliance. This is just a very minute offshoot of commercial law practice.

    “I and my firm will deliver quality service aimed at ensuring that quality goods and services enter into the economy.

    “The economy will be strengthened and that will make us happier. We are going to ensure the company complies with regulatory requirements,” he said.

    Dio hopes the partnership would boost the business relationship between Nigeria and Portugal.

    “Portugal was the first European country to land on the African soil. As early as the 14th century, the Oba of Benin had an ambassador in Portugal. By then the country was trading on the coast of West Africa and they were the last people to leave. I think they can still rekindle the old ties as they enter the Nigerian market,” Dio said.

    Piers said CISF exports to countries such as Brazil and Angola and is also into construction.

    “CISF believes that Nigeria is the biggest market in Africa. It’s a very traditional company in the transportation of merchandise and export going back t 1942 when it was founded by the current CEO’s grandfather.

    “The partnership will grow the wine market and introduce Portuguese wines which are not already present in Nigeria. Nigerians will get to taste a different kind of wine. With this partnership with Mr Dio, I am sure we can trust Nigeria’s legal systems and regulations.

    “We are ready to go through the processes – trademark and NAFDAC registrations, as well as incorporation. CISF is a very versatile company, so if the opportunity arises in the engineering and construction sector, we’ll participate,” he said.

    Also at the meeting held at the Southern Sun Hotel, Ikoyi, were Mr Tony Odiadi and wife Jacqueline, who are consultants to the transaction.

     

  • SEC goes tough on mutual funds, compliance

    SEC goes tough on mutual funds, compliance

    The Securities and Exchange Commission (SEC) has directed all fund managers in the country to register with the industry’s trade group as the apex capital market regulator moves to enhance compliance with extant rules and regulations.

    In a circular, SEC stated that it is now compulsory for all fund managers to be register with the Fund Managers Association of Nigeria (FMAN), the umbrella trade association established for all registered fund and portfolio managers in Nigeria.

    According to the Commission, the directive is pursuant to the powers conferred on it by Section 13 of the Investments and Securities Act (ISA) 2007 and consistent with Rule 25(1) of its rules and regulations.

    SEC stated that it was partnering with FMAN to develop the funds and portfolio management industry in Nigeria through enlightenment and training and complaints resolution among others with a view to ensuring a sustained growth of the Nigerian investment management industry.

    “Henceforth, the Commission will use membership of FMAN as a requirement to appraise operators in this segment of the Nigerian capital market,” SEC stated.

    In another circular, SEC stated that all operators must comply with extant rules and regulations in all their filings with the Commission.

    SEC said all capital market operators and issuers to ensure that any application filed with the Commission complies fully with the requirements of its rules and regulations.

    “All supporting documents, in the approved format, shall accompany applications at the time of filing as any incomplete filing will be rejected outrightly. Consequently, all market operators and issuers shall ensure that deficiencies or queries raised on their applications are promptly addressed within a reasonable timeframe or as may be stipulated by the Commission,” SEC stated.