Arunma Oteh, Director General, Securities and Exchange Commission (SEC), who has been leading the Africa Middle East Regional Committee (AMERC) of the International Organisation of Securities Commissions (IOSCO) since June 2010, was re-elected Chairperson in September 2014. Oteh who was recently awarded the ‘Most Innovative Capital Markets Regulator in Africa in 2014’ in recognition of her managerial prowess by ABN, spoke with some select journalists on concerted efforts to build the capital market of her dream, her plans for SEC, among others. Ibrahim Apekhade Yusuf was there.
You were named the African Business leader of the year 2014, how does that feel?
Well, I’m grateful for this. ABN has changed the landscape of business reporting and has been connecting Africa to the world. So I am really honoured that I am able to be some evidence of excellence. I also just want to say that this recognition for me means very much. I had vision, but I had a team around me, the SEC staff who tapped into that vision. We also have had capital market operators who have aligned behind our vision. I want to celebrate SEC staff, capital market operators.
This is very important to me because I think it is an outstanding category for what we do at SEC. I think what we have done is to create an enabling environment such that businesses can realise their potentials but also such that our nation can realise its potentials. But in doing that, what we have seen is that we have been such a role model for other countries around the world because we have been bold, we have done things people have wondered whether they should do. We have taken risks, and those risks have paid off for us. But I think what is most important for me in this recognition is that around the world, capital market regulators feel that there is a greater understanding of the role that capital market play in transforming society. Whether it is to help businesses or creating jobs, whether it is just building a meritocracy, but even as we deal with the security challenges that we face today, all of us as regulators, whether market participants believe that what capital does is to enable social cohesion and enable us address some of the challenges that we face today. As such, I see the award as a better understanding of the impact of the capital market on society. It was really an emotional moment for me.
What’s your assessment of Nigeria and the global financial market overall?
First and foremost, Nigeria is a role model in the regulation of capital markets, we sit on the board of the International Organisation of Securities Commissions (IOSCO) we support the organisation in building the same kind of system that we have built in terms of our regulation. We recognise that as the country that has the largest economy in Africa that we have to make sure that our capital market counts. We believe that it is very important for people to understand the value of capital markets in transforming society. If you are not distributing wealth, then you have some of the challenges that we face in the world, whether it is security challenge, whether it is social cohesion, we feel that what we do in regulating the capital market helps build first class businesses, helps create environment where citizens feel they are part of the success of the economy. It is very important in terms of the impact of the capital market and we in Nigeria want to be the role model for that capital market that transforms society.
What in your view do you think can be done to restore investors’ confidence?
First and foremost, your first line of defence is your knowledge and so my advice to the average person is to make sure that they learn about the options available to them, so, it starts with you. When you have had a bad experience, in your next step, learn from the bad experience. The second one is track record, like in the case of Nigeria, this is a market where market integrity is priority, supporting our investor is a priority. Therefore you have a regulator and you are sure the regulator will support you if you have any complain. First you need to learn and understand what the options are. You should know what you are saving for either the rainy day, for your child’s education, for the future or anything else.
In retrospect, how would you describe your experience as the DG of SEC in the last few years?
I will say it has been fascinating, challenging, exciting, I have run on everything that I have been. I could not have been better prepared for a role because one I had basically covered the capital markets around the world. So joining the SEC and deciding to go world class market, I knew what that meant. But I think even more important is really getting by, carrying people along, having people connect with our vision and take action even though those changes may be initially painful.
You have introduced reforms and faced some challenges, do you think it would have been any different if you were a man?
I think that it would be different whoever you are. I think gender is important, there are advantages to being a man, and I think there are greater advantages in being a woman, particularly when you are introducing change. First, people do not think that you are one of the boys anyway, so if you do things differently, they kind of expect it because it is not what they are used to. And so they expect it, it gives you time to create the momentum you need as you drive change.
The other things are, of course, there are attributes that many women bring to a work place. I think that women, not at the risk of being stereotypical, are very team-oriented. So in general, it is easier for me as a woman to carry others along. And when you are creating change, being sustainable, when you are trying to be different, carrying other people along is very important.
Some of the more difficult areas that people don’t think very much of being in the first place, some of people have cultural problems in having women lead them. You address that very quickly by having early success. People like success, they are not worried whether you are a man or woman, whether you are young or old, or green or black. If you are successful, everyone wants to identify with success.
Still talking gender, what do you have to say to a woman who is scared or skeptical about taking up an otherwise male-defined role?
I will say to women what do you have to lose in trying when you have a whole lot to lose in not trying at all? But I think more importantly, I want to say to women and mothers to lay early foundations. I had a mother and father who always told me the sky was the limit. They did not say to me if you are a young man the sky is the limit and if you are a young woman the sky is not the limit. We were all basically encouraged to try and realise our potentials. I think, those early beginnings, those early foundations and women playing a role in nurturing children and making sure that all that God has put in them is realised.
Who are your role models?
I think my parents because they laid an early foundation to stand up for what is right, to make sure that I’m working and whatever I’m doing impacts on society. And their lives was something I would emulate. Also business leaders like Bill Gates, he is someone that I have admired both in terms of what he has achieved with Microsoft, but also just giving all of it to transforming society and focusing on real development challenges. Madam Walker, the first female billionaire in the US who was looking for products for her hair and did not find it, made something for her hair and decided that she would make it available to other black women. People who are innovative, people who have changed the world, those are the ones that inspire me.
What is your next step in business?
There is a lot to do, I think that where we are in Africa, we need to make sure that Africa’s rising narrative is not just something that is in fashion, we need to lay that foundation so that every action people take, they can educate their children and this can resolve whatever challenges they have, they can have a roof over their heads among others. I think the capital market is doing that. As the head of SEC in Nigeria there is a lot we can do in our markets, we have laid a strong foundation, as the Chair of Africa and Middle East Regional Committee (AMERC). There is a lot we can do in building capital markets that are world class. So basically there is a lot that we can do.
