Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Fixed Income Securities

SEC says state governments have borrowed N900 billion from capital market

Chike Olisah by Chike Olisah
November 19, 2020
in Securities
Reps raise alarm over N200 billion unclaimed dividends in 2020, the Capital market, Lamido Yuguda assumes duty as new DG of Security and Exchange Commission, SEC promise to intensify monitoring, surveillance of market operators

Director-General of the SEC, Lamido Yuguda

Share on FacebookShare on TwitterShare on Linkedin

The Securities and Exchange Commission (SEC), has revealed that state governments in the country have borrowed at least N900 billion from the Nigerian capital market since 1978.

According to a report from Vanguard, this disclosure was made by the Director-General (DG) of SEC, Mr Lamido Yuguda, at a webinar which was organized by the Nigerian Stock Exchange (NSE) on ways sub-nationals can raise funds through the sale of state-owned enterprises.

READ: Nigeria’s total public debt stock increased by N2.381 trillion in 3 months

RelatedPosts

Nigeria’s unclaimed dividends rises to N180 billion

THIS WEEK: Equities market continues bullish run while exchange rate depreciates further

The SEC DG who was represented by the Executive Commissioner in charge of Legal and Enforcement, Mr. Reginald Karawusa, revealed that this amount was raised from the capital market through the issuance of debt since 1978.

While speaking on ‘Privatization in Nigeria and the Outlook for Sub-National Economic Development’, the theme of an event organized in partnership with the Nigeria Governors’ Forum (NGF) and the Nigerian Investment Promotion Council (NIPC), he said a huge part of these funds were deployed to financing capital projects and some critical infrastructures for the development of their various states.

News continues after this ad


READ: FG to disburse N97.3 billion to tech innovators, agric enterprises

He said, “Sub-national issuers in Nigeria have been able to access the debt capital market over the years since 1978, state governments in Nigeria have raised close to N900 billion through debt issuances. A significant part of these funds was deployed to finance capital projects across the country.’’

News continues after this ad


It must be noted that State governments raise long-term funds from the capital market through bond issuance. In the past, many states including Lagos, Ekiti, Delta, Edo State, Yobe, Osun among others, have raised funds from the market which were basically used for the execution of projects and development of infrastructures.

READ: FG reveals amount spent on school feeding program during lockdown, denies spending N13.5bn monthly

The SEC boss, however, noted that a drop in allocation from the Federal Government due to significant decline in oil revenue, low level of internally generated revenue and so on, has negatively affected the ability of most of these states to pay salaries after servicing its debts. This has also affected the states’ ability to continue to borrow in a sustainable manner.

On the privatization of state-owned enterprises, Yuguda said, “Several enterprises are still owned and controlled by the government, both at the state and federal levels. A number of these entities have the capacities to generate cash flows and corporate profitability.’’

READ: Unclaimed dividend stands at N158.44 billion, over N100 billion from unclaimed shares

He noted that privatization is a way for governments to unlock economic potentials inherent in these state-owned enterprises.

It must also be noted that raising these funds from the capital market which are needed badly for development, will be good for transparency, meet the financial obligation and good for funding of capital projects for development. Such improved infrastructure can help increase the internally generated revenue.

Related

Tags: Business NewsNigeria NewsNigerian capital marketSECSecurities and Exchange Commission

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Mega Millions
Hot forex
Cornerstone
Polaris Bank
Access Bank
Bankers Committee
First bank


FCMB




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Most valuable companies in Nigeria as of June 2022
    • Investment strategies you should adopt in your 20s
    • Nigerian airline passengers to experience flight delays for the next 3 months

    Follow us on social media:

    Recent News

    exchange rate crisis

    Most valuable companies in Nigeria as of June 2022

    July 7, 2022
    Investment strategies you should adopt in your 20s

    Investment strategies you should adopt in your 20s

    July 7, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com