The African Development Bank (AfDB) Group and the Securities and Exchange Commission (SEC) have announced the signing of a $460,000 agreement to support the acquisition, installation and deployment of an automated surveillance system to protect the capital market.
This was disclosed in a statement by Mr Lamin Barrow, the Director-General, Nigeria Country Department of the AfDB Group on Monday
AfDB said the grant will protect the securities market’s integrity and boost investors’ confidence.
What they are saying
Barrow stated that the surveillance system will enhance the SEC’s regulatory and supervisory oversight of securities trading in the country and would be implemented in two years at a cost of less than $1 million dollars with over $500,000 to be contributed by the SEC.
- “The grant was from the Capital Markets Development Trust Fund (CMDTF), a multi-donor trust fund administered by the AfDB and supported by the Ministry of Finance of Luxembourg and Ministry of Foreign Trade and Cooperation of the Netherlands.
- “The introduction of a surveillance system will enhance oversight securities trading across all existing and futures trading platforms.”
- ”It will also ensure that the market is well positioned to support economic transformation driven by private sector investment.
- ”The introduction of a surveillance system will enhance oversight over securities trading across all existing and future trading platforms and all tradable securities and products by the SEC.
- ”It will therefore preserve securities market integrity, boost investor confidence and enhance financial inclusion, among other expected outcomes,” he said.
Mr Lamido Yuguda, the Director-General of the SEC, said a market surveillance system was required to aid SEC in detecting and addressing market abuses as quickly and efficiently as possible to prevent infractions.
He added that an automated market surveillance tool would enhance the Commission’s role in investor protection and ensure a transparent, fair and orderly market to reduce systemic risks.
”The solution will aid the creation of jobs, encourage savings and facilitate wealth creation as well as Increased investment in the economy through Foreign Direct Investments (FDI),” he said.
In case you missed it
- At the recent Nairametrics Economic Outlook, Dayo Obisan, the Executive Commissioner, Securities and Exchange Commission (SEC) stated that Nigeria is leading amongst countries making the rules and regulating the digital asset space in Africa.
- He said the SEC is working to regulate the digital space as well as make it viable for the operator and protect investors that are going there.