Article highlights
- The Commission has issued new AML/CFT regulations and guidelines to address the deficiencies in Nigeria’s Mutual Evaluation Report (MER),
- The Commission will prioritize its planned increase of on-site inspections and improved collaboration with Trade Groups and other relevant stakeholders.
- SEC will ensure the implementation of the revised Capital Market Master Plan (CMMP), alongside the implementation of other initiatives.
The Securities and Exchange Commission (SEC) has said that the capital market is well-positioned for the realization of the objectives of the 2023 Budget of Fiscal Consolidation and Transition.
The Director General of the SEC Mr. Lamido Yuguda stated this in an interview at Abuja weekend.
Yuguda expressed the firm belief that the Nigerian Capital Market, being an organized and specialized financial market that drives capital mobilization through domestic savings and foreign capital inflows will help in achieving the objectives of the budget.
Safety and security of the capital market
The SEC Boss disclosed that for the safety and security of the capital market, and to address the deficiencies in Nigeria’s Mutual Evaluation Report (MER), the Commission has issued new AML/CFT regulations and guidelines.
According to him, the guidelines mandate CMOs to comply with stringent reporting obligations, such as the application of RBS by reporting entities, screening of clients against the United Nation’s Sanction List before onboarding, and continuous monitoring of clients among others.
Zero tolerance
He noted that the SEC will apply zero tolerance to money laundering, terrorism, and proliferation financing violations.
- “We must all ensure that we continue with the implementation of the revised Capital Market Master Plan (CMMP), alongside the implementation of other initiatives. Over the years, we have relied on the support of CAMMIC, Technical Committees, and Working Groups in the implementation of the Master Plan.
- “In line with the RCMMP, we will review and align the structure and scope of work of the various technical committees and working groups to ensure seamless implementation of the plan and continue to rely on the stakeholders,” he said.
Market performance
Yuguda explained that the Nigerian equities market ended the year on a positive note as the NGX All-Share Index (ASI) which started at 42,716.40 points, ended the year 2022 at 51,251.06 points, indicating a 19.98% growth. While the FMDQ, despite the headwinds in the economy, recorded a total market turnover of N199.88 trillion by year-end, which was an increase of half a percentage point compared to N198.93 trillion in 2021.
While stating that the Year 2022 was a turbulent one that brought with it increased inflationary pressure and consequent increase in interest rates for the global economy, he however expressed optimism that inflationary pressures would be managed in the not-too-distant future.
He stated that the global stock market posted its biggest annual drop since the 2008 financial crisis, with the MSCI World Index of stocks losing about a fifth of its value during 2022, the worst performance in 14 years;
- “Last year, the Nigerian economy faced several challenges, including worsening inflation, rising unemployment, huge fiscal deficit, insecurity, and floods. Additionally, oil theft and volatility in oil prices led to difficulties in foreign exchange management. In an attempt to tame inflation, the CBN raised the monetary policy rate four (4) times during the year, increasing the cost of financing for businesses and dampening corporate activity and performance.
- “Despite these challenges, the Nigerian economy grew by 3.52% (year-on-year) in real terms, driven mainly by the services sector, which recorded a growth of 5.69% and contributed 56.27% to the aggregate GDP,” he said.
On-site inspections
The SEC Boss assured that in protecting investors and creating an enabling environment for fit-and-proper capital market operators to thrive, the Commission will prioritize its planned increase of on-site inspections and improved collaboration with Trade Groups and other relevant stakeholders.
He commended the capital market community, for their unwavering commitment, which has played a crucial role in the Commission’s efforts to build a robust capital market adding that, their contributions and support have been instrumental to driving progress in the capital market and the country.
What you should know
President Muhammadu Buhari had January signed the N21.83 trillion 2023 appropriation bill into law, marking the last time he would be performing such a task as Nigeria’s president.
The annual financial plan, which contained robust provisions for the funding of this year’s general election, was passed by the National Assembly on December 28 last year.
