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Tag: Nigerian Capital Market

  • Nigeria targets higher global inflows with shorter settlement cycle

    Nigeria targets higher global inflows with shorter settlement cycle

    The Nigerian capital market will today transit from a four-day settlement cycle to a three-day cycle in a major change aimed at enhancing liquidity and investment activities by foreign and domestic investors.

    The transition from previous T+3 cycle to T+2 settlement cycle enhances the global competitiveness of the Nigerian market, providing investors with greater turnaround time while reducing counter-party risks.

    With the transition, all trades executed from today will now settle two business days after the trade date, as against the previous cycle when trades were settled or completed three days after the trade date.

    Turnover at the Nigerian stock market had doubled to all-time record of N9.57 trillion in the first 10 months of this year, with foreign portfolio investors accounting for more than one-fifth of transactions at the market.

    Managing Director, Central Securities Clearing System (CSCS) Plc, Haruna Jalo-Waziri, said the transition, which becomes effective today, represents a significant milestone in the ongoing modernisation of Nigeria’s post-trade infrastructure and reflects the market’s collective commitment to global best practices.

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    According to him, the achievement strengthens operational efficiency, enhances market liquidity, and significantly reduces counter-party risk, ultimately improving investor experience and ensuring quicker access to funds and securities.

    “The transition also positions Nigeria more competitively within the global capital market landscape, where shorter settlement cycles are increasingly becoming the standard,” Jalo-Waziri said.

    He expressed confidence in the readiness of the market, noting that the successful commencement of the T+2 settlement cycle is the product of extensive collaboration, rigorous testing, and the unwavering commitment of all market stakeholders.

    He said: “We are proud to lead this change at a time when efficiency and resilience are critical pillars for market competitiveness.

    “As we embrace the T+2 framework, we are unlocking efficiencies that will shape the future of Nigeria’s capital market for years to come. This milestone sends a clear message that the Nigerian market is evolving, forward-thinking, and determined to match and surpass global benchmarks in post-trade operations”.

    He pointed out that the CSCS had worked closely with the Securities and Exchange Commission (SEC), exchanges, market operators, custodians, and key trade associations to ensure smooth implementation.

    According to him, comprehensive readiness assessments, industry-wide testing, and participant engagements were conducted to guarantee that systems, processes, and operational frameworks were aligned with the new cycle ahead of today’s launch.

    He assured that as the market adjusts to this new settlement environment, CSCS remains committed to providing continuous support and guidance.

    He added that the company has also made implementation procedures and guidelines available to all market participants to aid operational clarity and ensure seamless adoption.

    “The T+2 transition marks another bold step in CSCS’s long-standing mission to drive innovation and operational excellence across Nigeria’s capital market. The organisation will continue to champion initiatives that strengthen market confidence, promote efficiency, and align the Nigerian market with global standards,” Jalo-Waziri said.

    Analysts said the transition further ensures that all other tradable instruments across the Nigerian Exchange (NGX), NASD OTC Securities Exchange, and Lagos Commodities & Futures Exchange (LCFE) align with fixed income and commodity instruments which already operate a T+2 settlement cycle.

    Analysts at United Capital said the transition was designed to give investors faster and smoother investing experience.

     “What this means for you, as an investor: From November 28, all equity trades will settle two business days after you make them. If you buy shares or other equities on a Monday, your trade will settle by Wednesday. If you sell shares or other equities on a Monday, your money will also be available by Wednesday,” United Capital explained.

  • ISA 2025: Unlocking vast potential of Nigerian capital market

    ISA 2025: Unlocking vast potential of Nigerian capital market

    The signing into law of the Investment and Securities Act (ISA) 2025 by President Bola Tinubu is probably the most transformative reform in the Nigerian capital market in nearly two decades. With copious provisions on enhancement of investors’ protection, new securities, commodities, digital assets and expansive and nimble regulatory powers, Deputy Group Business Editor, Taofik Salako examines the potential of the new Act in the light of national economic agenda    

    For the first time in nearly two decades, Nigeria penultimate week made a remarkable review of the extant laws for its capital market. The signing into law of the new Investment and Securities Act (ISA) 2025 by President Bola Tinubu represents a momentous moment for the Nigerian capital market. The ISA 2025 repealed the Investments and Securities Act No. 29 of 2007.

    The new Act promises to reshape the Nigerian capital market in several ways. From investor’s protection to variety of issuable and tradable instruments to integration of the commodities sector to new innovations in derivatives, digital and paperless denominations to domestic enforcement and international cooperation, the ISA 2025 brought the Nigerian market to the most dynamic global level and provided enough headroom for regulatory ingenuity to meet future developments.

    The new Act introduced critical reforms to promote market integrity, transparency, and sustainable growth, while enhancing the authority of the Securities and Exchange Commission (SEC) as the apex regulatory authority of the Nigerian capital market. With such enhanced powers and functions, Nigeria is now fully in conformity with the requirements of International Organisation of Securities Commission (IOSCO)’s Enhanced Multilateral Memorandum of Understanding (EMMoU). This EMMoU enables Nigeria to retain its “Signatory A” status, thus enhancing the overall attractiveness of the Nigerian capital market.

    Transformative changes

    There were several notable provisions that made ISA 2025 a landmark legislation. The Act expands the definition and understanding of securities by explicitly recognising virtual and digital assets as well as investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.

    There is also legal framework for commodities exchanges. The Act contains a new part which provides for the regulation of commodities exchanges and warehouse receipts. These provisions are essential to allow for the development of the entire gamut of the commodities ecosystem.

    In the area of issuance of securities by sub-nationals and their agencies, salient provisions of the Act address existing restrictions in respect of raising of funds from the capital market by sub-nationals to allow for greater flexibility in this regard.

    In terms of transparency in securities transactions, the new  Act introduces the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions. This stipulation is designed to improve transparency in the conduct of securities transactions.

    In a major enhancement of investor protection, the Act expressly prohibits Ponzi Schemes and other unlawful investment schemes, while prescribing stringent jail terms and other sanctions for the promoters of such schemes.

    It also strengthens the Investments and Securities Tribunal (IST) by amending some key provisions in the repealed ISA 2007 pertaining to the composition of the tribunal, constitution of the tribunal, qualification and appointment of the chief registrar as well as the jurisdiction of the tribunal to enhance the ability of the tribunal to optimally discharge its mandate.

     ISA 2025 expands the category of issuers to the public, a key step towards the introduction of a wide range of innovative products and offerings as well as the facilitation of “commercial and investment business activities”, subject to the approval of SEC and other controls stipulated in the Act.

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    In the area of classification of exchanges and inclusion of provisions on financial market infrastructures, the Act classifies securities exchanges into composite and non-composite exchanges. A composite exchange is one in which all categories of securities and products can be listed and traded, while a non-composite exchange focuses on a singular type of security or product. There are also new provisions on financial market infrastructures such as central counter parties, clearing houses and trade depositories.

    It also provides comprehensive insolvency provisions for financial market infrastructures by introducing provisions that exempt transactions facilitated through or otherwise involving financial market infrastructures from the application of general insolvency laws.

    In the area of management of systemic risk, the Act introduces provisions for the monitoring, management and mitigation of systemic risk in the Nigerian capital market.

    Stakeholders and experts said the new Act would usher in a new era of dramatic growth and development for the Nigerian capital market and the economy generally.

    Market expectations

    Director General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said the ISA 2025 was a game-changer with strong potential for stimulating growth for the Nigerian capital market and the economy.

    According to him, while the new Act fosters innovations, it provides enough deterrence and powers to curtail investor’s abuses and infractions, many of which had festered due to absence of enabling law.

    For instance, under the new Act, promoters and operators of any entity engaged in illegal and unauthorised investment scheme, otherwise known as Ponzi, are liable on conviction to a penalty of not less than N20 million or imprisonment to a term of 10 years or both.

    Agama noted that SEC previously lacked the legal power to prosecute Ponzi scheme operators, which made it difficult to bring offenders to justice.

     “With the new law, they now face a 10-year jail term and beyond,” Agama said, noting that the Act stipulates a minimum fine of N20  million for anyone operating a Ponzi scheme in Nigeria, and such penalties could be as much as the Commission indicated, including “disgorgement,” recovering any profits or gains obtained from defrauding Nigerians.

    Agama said the new ISA 2025 also provided SEC with the power to be able to obtain and request telephone conversations and all other conversations that are required to prosecute Ponzi operators.

    “We recognise that a lot of Nigerians have fallen prey to these sponsor schemes and the reason why that is the case is because there were no sanctions. What this Act has done was to introduce measures for Ponzi scheme operators and intending Ponzi scheme operators not to be able to do this again against the wish and will of Nigerians.

    “Protecting the investors in Nigeria is a cardinal responsibility of the SEC and this law has provided the SEC with stronger powers to be able to do that. This law has also been able to provide the SEC the powers to be able to search phones and get phone records for people who are interested in dealing with Nigerians or interested in duping Nigerians. We are able to get these records and quickly provide enforcement actions for the people that are involved. So, for us, the possibilities are limitless,” Agama said.

    He also cited expansive implications of new provisions on new securities, pointing out that the new law has increased capital raising opportunities through variety of instruments while providing regulatory basis for new vistas in the areas of online foreign exchange (forex) and digital assets.

    Said he: “This is huge because in the Nigerian population, the youths that are involved in forex and digital space are many. So, providing clarity, legal framework and background to this area is very essential for our growth.

    “The commodities ecosystem is well featured in this law. We are now able to provide regulations regarding the full commodities ecosystem, from the spot market to the derivatives market and the secondary market.

    “Also, by this ISA 2025, we have also been able to remove restrictions against the ability of states and local governments to raise capital and bring development to their states and of course municipal areas. So, this for us, is very important”.

    Chairman, Senate Committee on Capital Market, Senator Osita Izunaso, who sponsored the Bill on the Repeal and Reenactment of the Investment and Securities Bill 2025, describe the new Act as a holistic enactment aimed at resetting the entire investment and securities law in Nigeria.

    “With what we have done, today, for the first time in the history of Nigeria, the digital assets as well as cryptocurrency has now been recognised as a form of security in Nigeria. This means that people can now trade with digital assets, people can now do cryptocurrency and it will be properly regulated by SEC,” Izunaso said.

    He said while the Act would end all forms of Ponzi schemes in Nigeria, it will foster the growth of digital assets and cryptocurrency.

    He said the new Act has positioned the capital market to contribute more significantly towards the realisation of the $1 trillion economy.

    “If we want to achieve the $1 trillion economy that Mr. President is envisaging, we must promote both the money market and the capital market. So today, the capital market has been reset for that purpose.

    “I would also like to make it clear that the days of Ponzi insider trading and market manipulations are over in Nigeria. Today, if you are caught in a Ponzi market arrangement, you risk going to jail for 10 years and also pay a fine of between N20 million to N40 million and all the money that you took from people will also be recovered from you,” Izunaso said.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Oluropo Dada said the new Act was a testament to collective dedication to advancing the capital market and securing its future as a catalyst for economic development.

    According to him, the ISA 2025 underscored government’s commitment to fostering transparency, efficiency, and stability in our financial markets.

    He noted that the Act introduced comprehensive reforms aimed at modernising the regulatory framework, enhancing investor protection, and creating a more robust platform for economic growth and development.

    “As capital market professionals, we are confident that this Act will deepen market integrity, boost investor confidence, and expand the range of investment opportunities available to Nigerians and global investors alike,” Dada said.

    Managing Director, APT Securities & Funds Limited, Mallam Kasimu Kurfi, said the new Act would usher in many changes in the market.

    “As you know, for more than 17 years, there had been no review in the capital market law, despite several changes, including the global meltdown of the capital market in 2008-2009. The digital securities and many other developments in the capital market needed to be addressed. The revised Act has added several new developments and we are going to have a complete change. There are going to be many new developments in the capital market,” Kurfi, a member of the board of SEC, said.

    Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Sam Onukwue, said the Act would strengthen regulatory oversight of the capital markets with the overall objective of enhancing investor protection.

    Said he: “We believe it will rekindle the confidence of market stakeholders, which will, in turn, engender significant growth of the market going forward.  For operators, it provides diversification opportunities with the expanded scope beyond traditional equities and fixed income”.

    Managing Director, NASD, Eguarekhide Longe, said the ISA 2025 came at the right time as the market needs to strengthen the regulatory framework given the unfolding digital products and the need to attract youths.

    According to him, the new Act would address several key issues, including investor protection and fraud detection, recognition of virtual assets as securities and systemic risk management.

    Managing Director, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu –Ale, said reflected the competencies of the current managers of the economy.

    “We have people that now understand that the capital market is the barometer of the economy and that the enabling environment, particularly the legal framework, is the bedrock for growth of the capital market, and the overall economy,” Akeredolu-Ale said.

    Managing Director, HighCap Securities, Mr David Adonri, said the new Act would give new impetus to the orderly growth and development of the Nigerian capital market.

    “Many unregulated areas have been brought under regulation. The commodities space has been ring fenced while provisions have been made for safer trading in digital assets. Severe penalties have been prescribed for pyramidal schemes under the new ISA 2025. It reflects the realities that the market faces today. It is an enabling framework that will protect the investing public and boost investors’ confidence in the capital market. With the new ISA, the trust and integrity upon which the capital market is founded will be further strengthened,” Adonri said.

    With the government and companies raising more than N10 trillion in nearly 15 months, the new Act undoubtedly promises to unleash vast potential for issuers and investors. Nigeria’s huge infrastructural gap requires a versatile capital market, and the new ISA 2025 appears ready to facilitate that.

    As SEC engages with market operators, investors and all stakeholders to ensure a seamless transition from the repealed ISA 2007 to the new legal regime established under the ISA 2025, the capital market is set for a new era of growth and development.

  • President assents to new law for capital market

    President assents to new law for capital market

    • New regulations expand investor’s protection

    President Bola Tinubu has assented to the Investments and Securities Act (ISA) 2025, which repealed the Investments and Securities Act No. 29 of 2007.

    The new landmark legislation strengthens the legal framework of the Nigerian capital market and enhances investor protection.

    Besides, the new Act introduces critical reforms to promote market integrity, transparency, and sustainable growth.

     The enactment of the ISA 2025 reaffirmed the authority of the Securities  and Exchange Commission (SEC) as the apex regulatory authority of the Nigerian capital market.

    Director General, Securities and Exchange Commission  (SEC), Dr Emomotimi Agama, who confirmed the presidential assent yesterday,  said the new Act introduces transformative provisions that further align Nigeria’s market operations with international best practice.

    Said he: “The ISA 2025 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently and reposition Nigeria as a competitive destination for local and foreign investments.

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    “We commend all stakeholders within and outside the capital market community for their unwavering solidarity towards the achievement of this historic milestone and solicit their continued collaboration in respect of the effective implementation of the ISA 2025 for the benefit of our economy.”

    According to him, the Act enhances the regulatory powers of the SEC in a manner comparable with benchmark global securities regulators.

    He added that the enhanced powers and functions ensure full conformity with the requirements of IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), enabling the SEC retain its “Signatory A” status and enhancing the overall attractiveness of the Nigerian capital market.

    There were also several other notable provisions of the ISA 2025.

    In the area of classification of Exchanges and inclusion of provisions on financial market infrastructures, the Act classifies Securities Exchanges into Composite and Non-composite Exchanges. A Composite Exchange is one in which all categories of securities and products can be listed and traded, while a Non-composite Exchange focuses on a singular type of security or product. There are also new provisions on Financial Market Infrastructures such as Central Counter Parties, Clearing Houses and Trade Depositories.

    The Act expands the definition and understanding of securities by explicitly recognising virtual/digital assets and investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.

    It also provides comprehensive insolvency provisions for Financial Market Infrastructures  by introducing provisions that exempt transactions facilitated through or otherwise involving Financial Market Infrastructures from the application of general insolvency laws.

    In the area of management of systemic risk, the Act introduces provisions for the monitoring, management and mitigation of systemic risk in the Nigerian capital market.

    It also expands the category of issuers to the public, a key step towards the introduction of a wide range of innovative products and offerings as well as the facilitation of “commercial and investment business activities”, subject to the approval of the Commission and other controls stipulated in the Act.

    There is also legal framework for commodities exchanges. The Act contains a new part which provides for the regulation of Commodities Exchanges and Warehouse Receipts. These provisions are essential to allow for the development of the entire gamut of the Commodities ecosystem.

    In the area of issuance of securities by sub-nationals and their agencies, salient provisions of the Act address existing restrictions in respect of raising of funds from the capital market by Sub-Nationals to allow for greater flexibility in this regard.

    In terms of transparency in securities transactions,  the new  Act introduces the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions. This stipulation is designed to improve transparency in the conduct of securities transactions.

    In a major enhancement of investor protection, the Act expressly prohibits Ponzi Schemes and other unlawful investment schemes, while prescribing stringent jail terms and other sanctions for the promoters of such schemes.

    It also strengthens the Investments and Securities Tribunal by amending some key provisions in the repealed ISA 2007 pertaining to the composition of the Tribunal, constitution of the Tribunal, qualification and appointment of the Chief Registrar as well as the jurisdiction of the Tribunal to enhance the ability of the Tribunal to optimally discharge its mandate.

    SEC extended its profound appreciation to the National Assembly for its patriotism and dedication in enacting this new legal framework for the Nigerian capital market.

    Agama noted that the meticulous deliberations, extensive stakeholder engagements, and bi-partisan support demonstrated throughout the legislative process highlight the National Assembly’s resolve to foster economic growth and enhance investor confidence.

     “We also commend the Honourable Minister of Finance and Coordinating Minister of the Economy of Nigeria as well as the Minister of State for Finance for their invaluable contributions to the realisation of this groundbreaking project. Their strategic guidance, policy expertise, and steadfast support have ensured that the ISA 2025 aligns with Nigeria’s broader economic objectives.

     “The SEC would continue to engage with market operators, investors, and all stakeholders to ensure a seamless transition from the repealed ISA 2007 to the new legal regime established under the ISA 2025,” Agama said.

  • Osinbajo hosts London Stock Exchange Africa Advisory Group

    Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja, met with a delegation of the London Stock Exchange Africa Advisory Group, led by its Chairman, Suneel Bakhshi.

    Bakhshi, who spoke with State House correspondents after the meeting, said that the group had a mission on behalf of the London Stock Exchange to help deepen the African Stock Exchange.

    He said that Nigeria was a very important country in Africa and also a strategic partner.

    “So, we are working very closely with the Nigerian Stock Exchange on a number of initiatives to help deepen the Nigerian Capital Market.

    “One example, we are launching tomorrow in Lagos, programme titled-Companies to Inspire Africa; we have indentified many companies that deserve to be recognised and these are SMEs which will benefit from the greatest visibility that we can provide.

    “In all emerging markets including African markets, there is a need for greatest transparency; greater liquidity; for greater standardisation and for greater innovation and our belief and principle in setting up the Africa Advisory Group is that London can Exchanges such with the Nigerian Stock Exchange to the benefit of the local Capital Market.

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    “So, that is just one example; we had a very good discussion today on topic of linking financing better from Pension Funds to infrastructure; that is an area that will be referenced in white papers that we have produced last year and the London Stock Exchange is partnering with our advisers here.

    “They have produced five white papers around a variety of topics and they include Green Bond Financing, SMEs financing and Standardised Information Reporting,’’ he said.

    He said that all the examples would help to deepen the stock market and provide liquidity so that investors and shareholders in African and Nigeria with greater confidence could finance entrepreneurs and finance companies listed on Exchanges.

    On her part, Ms Catriona Laing, the British High Commissioner to Nigeria, said that the group would offer some of the studies that it had done through looking across Africa about what worked in terms of deepening and strengthening stock markets.

    More so, Mr Oscar Onyema, Chief Executive Officer, Nigerian Stock Exchange(NSE) said there was a lot of thought  leadership that the London Stock Exchange Advisory Group brought  on board.

    He said that NSE was working with the group to examine some critical issues across the continent of Africa to find solutions that would create win-win situations for the parties

    NAN

     

  • Assets custodians showcase Nigerian capital market in London

    Leading assets’ custodians, capital market operators, regulators and global investors will next month in London further explore the potential of the Nigerian capital market.

    The Association of Assets Custodians of Nigeria (AACN) is organizing its eighth investors’ forum in London as part of activities to commemorate its 10th anniversary.

    The theme of the Annual Nigerian Investors Day is ‘Nigeria: the Economics of the Capital market’. The event will take place on Thursday, May 9, at the London Marriot Canary Wharf Hotel & Executive Apartments, London.

    At a briefing in Lagos, AACN President, Mrs. Taiwo Sonola, said the international forum is part of the commitment of the association to the promotion of investments in Nigeria.

    “The potential of the Nigerian economy is vast and it is important that the opportunities are showcased globally,” Sonola said.

    She outlined that the London conference will focus on investor confidence, processes, infrastructure, products, governance, regulations and market developments.

    She pointed out that the one-day forum will avail the global audience up-to-date information on the Nigerian capital market, noting that against the backdrop of the successful conduct of general elections in Nigeria, the forum will seek to reassure international investors of the safety of their investments in the country, while highlighting the huge potential to undecided investors.

    “The aim is to build foreign investor confidence and provide a platform for foreign investors to network with the Nigerian capital market regulators, operators with particular focus on custodians, fund managers, broker dealers, and regulators and also provide a forum for the promotion of custody business in Nigeria. It will also provide opportunities for participants to air their views and challenges,” Sonola said.

    She added that the forum will also bring together investors to engage with each other, share information, review the Nigerian policy and economic environment as well as peruse economic opportunities.

    She said leading voices from the securities services in Nigeria and abroad are expected to provide a full overview of the leading trends and challenges facing the industry.

    She explained that the choice of London was due to its status as the heartbeat of financial activities in Europe noting that as the bulk of assets managed by Nigerian custodians are owned by foreign portfolio investors, it is only logical to interface with them on their home ground.

    The 2019 Annual Nigerian Investors Day in London is the 8th annual conference of its kind. About 100 delegates are expected at the event.  Institutions expected to participate at the event include representatives from the Debt Management Office, Securities and Exchange Commission, Central Securities Clearing System (CSCS) PLC, FMDQ OTC PLC, Nigerian Stock Exchange (NSE), registrars, fund management companies as well as other companies.

    Sonola noted that in its 10 years of existence, the association has contributed in no small measure towards development of the Nigerian financial markets, including initiatives with the Central Bank of Nigeria (CBN) and the Financial Market Dealers Association to facilitate a more efficient and investor-friendly electronic Certificate of Capital Importation (CCI) processes for the various investment products in Nigeria.

    According to her, the association also collaborated with the Securities & Exchange Commission (SEC) to initiate the mandatory appointment of custodians to registered collective investment schemes and joint development of operational guidelines and other prerequisites for securities lending in the Nigerian capital market with the Nigerian Stock Exchange (NSE) among others.

    In celebrating its 10th anniversary, the association, as part of its corporate social responsibility initiatives, will be mentoring a school in Lagos as well as organizing a 10th anniversary seminar and  dinner during which individuals who have contributed to the development of the non-pension custody industry would be honoured.

    Sonola assured that AACN is  committed to championing positive market reforms, driving efficiency and initiating advocacy at all key market touchpoints.

  • Technology to drive processes in the Capital Market, says Uduk

    Acting Director General of the Securities and Exchange Commission, SEC, Mary Uduk has said that Technology when properly leveraged will reduce the cost of doing business in the capital market.

    This Uduk said, is one of the reasons why the apex regulator of the Nigerian Capital Market is encouraging the introduction of technology in the market.

    According to Uduk: “We know that technology is driving a lot of things in the financial system at the moment. For instance, in the banking system, technology is driving the payment system. Even with phones people can buy, make payments and even obtain loans among others.

    “We have seen that there is a lot of innovation and cost reduction in the money market due to technology, and so we also want to do the same in the capital market.

    “To this end, the Capital Market Committee has set up a Road Map committee to come up with a guide for the capital market to enable us also leverage on technology to do business and reduce cost.”

    The Acting DG disclosed that the Commission already has a division dedicated to Fintech that will help look at all the technologies that relate to the capital market surrounding ICOs, among others.

    Read Also: SEC advises shareholders to monitor investments

    She said that in the capital market, technology has assisted in improvements of processes like the use of Block chain to enhance settlement, and the use of technology to drive the platforms through which people are now able to come in to invest.

    “Innovations in financial technology, has made possible the potential of using digital tools to make financial services available to a wider range of consumers and enterprises, promoting financial inclusion and the affordability of financial services.

    “A financially inclusive society will provide increased access to finance, especially for women, help support sustainable growth and will create a million more jobs. The gains of having a more inclusive financial system are enormous, as it helps broaden financial markets and make policies more effective,” she added.

     

  • SEC takes e-Dividend campaign to South East

    In a move to further enlighten investors and the general public on the process and benefits of e-Dividend, multiple subscription, e-processes and other contemporary issues in the Nigerian Capital Market, the Securities and Exchange Commission (SEC), will be holding a Town Hall meeting with stakeholders and the general public in Enugu.

    The event which has as its Theme: “Current Initiatives by the Securities and Exchange Commission, SEC Nigeria to Enhance Investor Value”, is expected to draw participants from various segments of the society.

    The meeting is scheduled for Thursday December 6, 2018 at Hotel Sylvia, No. 66 Ezillo Avenue, Independence Layout, Enugu State.

    Registration of participants starts by 9:00 am while the main event starts at 10:00 am.

    The event will create an avenue for the Apex capital market regulator to educate and enlighten the public on the above subject and also for operators, stakeholders and various investors to interact and discuss other issues surrounding the activities of the capital market.

    Recall that the SEC in January 2015 commenced the e-dividend registration campaign in Abuja with a road show culminating in a town hall meeting.

    Read Also: We are working to improve investors’ confidence, says SEC

    The event will also provide an opportunity to throw more highlights on investment opportunities available in Nigerian Capital market and how retail investors can benefit therein.

    The Commission had announced that the e-dividend registration would continue seamlessly in spite of the expiration of free registration deadline and also enjoined investors yet to enroll, to continue with the registration at a cost of N150 only.

    “Investors should continue to approach their banks or registrars, as usual, to seamlessly mandate their bank accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue; as the N150 would not be demanded from them at the point of registration.

    “Also, the Commission recently extended the forbearance period for regularization of multiple share subscription to another one year after the expiration on 31st December 2018.”

    Acting Director General of the Commission, Mary Uduk disclosed this in her address at the 3rd and final Capital Market Committee(CMC) meeting held for the year 2018 in Lagos.

    “I am delighted to report that on the lingering issue of multiple subscriptions and forbearance for shareholders with multiple accounts, the CMC agreed that the forbearance window should be extended by another year from the December 31,2018 deadline previously communicated”, she said.

    The SEC boss called on investors to take advantage of this opportunity to claim their unclaimed dividends and bonuses before the expiration of forbearance period.

  • SEC extends multiple subscription deadline to Dec 2019

    ……. Pledges to tackle identity theft

     

    In a move to ensure more investors regularize their accounts thereby reducing the volume of unclaimed dividends in the Nigerian capital market, the Securities and Exchange Commission, SEC has announced an extension of forbearance on such accounts to December 31, 2019.

    This among others was part of the decision reached at the end of the 3rd Capital Market Committee, CMC meeting held in Lagos, Thursday.

    Recall that the SEC had announced December 31st 2018 as deadline for regularization of multiple accounts.

    Briefing newsmen, Acting Director General of the SEC, Ms. Mary Uduk said the committee considered the issue and decided its best to give investors more time to regularize their multiple accounts in order to derive the benefits from their investments.

    She said “I am delighted to report that on the lingering issue of multiple subscriptions and forbearance for shareholders with multiple accounts, the CMC agreed that the forbearance window should be extended by another year from the December 31, 2018 deadline previously communicated. We expect investors to take advantage of this opportunity to claim their unclaimed dividends and bonuses”.

    Uduk also announced a two-pronged approach to addressing the intractable challenges associated with transmission of shares related to the estate of deceased investors. 

    “The first step would involve engagement with and enlightenment of the Probate Registry with a view to providing solutions to the cumbersome process of transmitting shares. 

    “Secondly, Rules would be developed around the time frame for transmission shares and the fee structure”

    Worried by issues of identity theft in the capital market, the Acting DG said the Commission will work with other major stakeholders in setting up a committee that will look into and proffer solutions to problems around identity management in the Nigerian capital market.

    Similarly, Uduk said as part of efforts to eliminate underhand dealings, the Commission is set to take enforcement actions against any persons engaged in trading in the shares of public unlisted companies outside a recognised securities exchange as provided by the Rules.

    On the need to grow the market for trading in securities on unlisted public companies, she said the Commission is making concerted efforts in collaboration with CAC and other stakeholders to assist public companies that are yet to register their securities to do so without much difficulty.

    “In furtherance of the commitment to develop a vibrant Commodities eco-system, the Commission has commenced the implementation of measures to strengthen regulatory capacity by establishing a Commodities Division. 

    Other recommendations of the Committee have been broken down into implementable plans with set timelines.

    “An interesting development in the commodities sector is the innovative solution developed by AFEX Commodities Exchange Limited (AFEX) and its partners regarding the use of Blockchain Technology to streamline the process of financing agriculture to Smallholder farmers and other players in the commodities markets” she added.

    In order to boost the e-dividend mandate and Direct Cash Settlement initiatives, Uduk said the Commission gave a commitment to the market that it would engage NIBSS (Nigeria Inter-Bank Settlement System) on behalf of the capital market community to facilitate identity validation and account validation in an effort to enhance market processes.

    She also disclosed that the market provided an update on the Electronic distribution of annual accounts by public companies to shareholders and it was reported that the shareholders have largely accepted the new initiative and are willingly providing their email addresses. It was agreed that further sensitization would be carried out by stakeholders to enlighten shareholders on the benefits of the initiative.

  • Egyptian firm eyes Nigerian capital market

    •Acquires stockbroking firm

    EFG Hermes, a leading financial services corporation in frontier and emerging markets, plans to set up operations in Nigeria to further drive its global expansion. EFG Hermes has entered into a definitive sale and purchase agreement (SPA) to acquire 100 per cent stake in Primera Africa, a top-ranked stockbroking firm in Nigeria. EFG Hermes expects to complete the acquisition of Primera Africa by August 31, 2018.

    EFG Hermes will use its Nigerian base as a hub for expansion into West Africa. EFG Hermes recently received FCA license to operate in the United Kingdom.

    Based in Lagos, Primera Africa already offers a comprehensive suite of brokerage and research services to domestic and international investors. Upon completion of the acquisition, Primera Africa will operate under EFG Hermes’ brand name, bringing to the Nigerian market a large network of investors who consistently seek compelling opportunities in high growth markets.

    Group Chief Executive Officer, EFG Hermes Holding, Karim Awad noted that Nigeria is the fourth direct entry as the firm continues its strategy of expanding geographic footprint in high-potential, frontier emerging markets.

    “At the close of this transaction, we will have a direct presence in 12 jurisdictions on four continents to serve our global institutional investors, regional high-net-worth individuals, and local retail investors,” Awad said.

    Co-Chief Executive Officer, Investment Banking, EFG Hermes, Mohamed Ebeid noted that Nigeria is Africa’s largest consumer market and is consistently among the three largest economies on the continent alongside Egypt and South Africa.

    He noted that Nigerian capital market accounted for the largest share of the firm’s brokerage executions and revenue among all frontier markets in which it indirectly executed during 2017.

    “We are entering a market that has a compelling story to tell investors. It is not just one of the largest and most economically diverse frontier markets globally; it is a growth story that has years to run after a series of structural reforms and a devaluation of the national currency. With oil prices now recovering, with significant portfolio inflows, and with the demonstrated ability to tap global debt markets, Nigeria will benefit from broad currency stability, we expect, remaining attractive in valuation terms at the same time,” said Ali Khalpey, the London-based CEO of EFG Hermes Frontier.

    Khalpey noted that given that the firm expects a ramp up in equity market transactions to drive global interest in Nigeria over the upcoming 12 to 18 months; EFG Hermes is well positioned to utilize its global network of clients to capture local market opportunities, capitalizing on its award-winning team’s experience in exploring frontier emerging market opportunities.

    With a current footprint spanning eleven countries across four continents, EFG Hermes started in Egypt and has grown over 30 years of success to become a leading financial services corporation with access to emerging and frontier markets.

     

  • Nigerian capital market appreciates by 3.91 per cent

    Nigerian capital market appreciates by 3.91 per cent

    Activities at the Nigerian Stock Exchange (NSE) on Wednesday closed on an upward trend, reversing two-week consistent decline with the market indicators appreciating by 3.91 per cent.

    The News Agency of Nigeria (NAN) reports that the market capitalisation grew by N302 billion or 3.91 per cent to close at N8.025 trillion compared with N7.723 trillion recorded on Tuesday.

    Similarly, the All-Share Index which opened at 22,456.32 rose by 878.69 points or 3.91 per cent to close at 23,335.01 due to huge gains posted by some blue chip equities.

    Market analysts attributed the reversal to bargain hunters who were taking advantage of low price of equities to increase their stakes in the market.

    They said that stocks were getting very attractive with prices at ridiculously low level as some investors were using the opportunity to re-enter the market.

    They attributed the downturn to worries over falling oil price and the naira exchange rate.

    Nestle topped the gainers’ chart appreciating by N33.75 to close at N708.85 per share.

    Dangote Cement chalked up N5.38 to close at N128.89, while Lafarge Africa improved by N3.47 to close at N83.47 per share.

    Guinness garnered N3.03 to close at N96.03, while Nigerian Breweries inched N2.95 to close at N97.60 per share.

    Conversely, Seplat led the losers’ table with a loss of N7.98 to close at N151.74 per share.

    Ashaka Cement dipped N2.50 to close at N24, while Flour Mill dropped N1.50 to close at N16.35 per share.

    Further breakdown showed that Ikeja Hotel decreased by 29k to close at N2.81, while Honeywell shed 17k to close at N1.63 per share.

    The banking stocks drove activity at the exchange with FCMB Group emerging the most traded, exchanging 37.29 million shares valued at N37.68 million.

    UBA came second with a total of 36.17 million shares worth N106.78 million, while GT Bank sold 22.07 million shares valued N90.32 million.

    Access Bank traded 22.07 million shares worth N90.32 million and Unity Bank accounted for 15.56 million shares valued N90.32 million.

    NAN reports that investors staked N1.58 billion on 242.53 million shares traded in 3,865 deals against 256.44 million shares worth N1.97 billion exchanged in 4,731 deals on Tuesday.