• The Securities and Exchange Commission (SEC) is striving to improve market efficiency and make the capital market attractive to the youth. 
  • The SEC is encouraging capital market operators to develop technology that makes it easier for young people to invest. 
  • The Commission is also working to protect investors and prevent market manipulation. 

The Securities and Exchange Commission said it is striving to improve market efficiency and to make the capital market attractive to the youth especially now that the demographics of the market is greying rapidly.

The Director General of the SEC, Mr Lamido Yuguda, stated this during a media parley in Lagos.  

SEC’s commitment to digitisation efforts

He explained that the Commission will continue to collaborate with various market stakeholders to support the impactful digitalization of the capital market. He said:

  • “The demographics of the capital market currently is greying and that is one of the things the Commission is tackling with the Revised Capital Market Master Plan. 
  • “We are encouraging Capital Market operators to develop the technology. The youths do not want to come in and start filling out five-page forms because they want to access the market, they want to pick up their phones and make their investments.”

Additionally, the SEC expressed their intention to introduce Fintech companies, recognizing them as a crucial gateway for youths to enter the market. They emphasized their awareness of this importance and their active efforts to work towards it.

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The success of SEC’s past digitisation efforts

He further highlighted the positive impact of electronic Initial Public Offering (e-IPO), which resulted in over 100,000 new accounts being opened on the CSCS, primarily among youths and women.

He also emphasized the significance of these demographic groups for sustainable growth and acknowledged their efforts to improve Know Your Customer processes and other aspects to simplify their experience. 

Other improvements so far made by SEC

As part of the digital transformation, the SEC DG disclosed that the Commission signed an MoU, last year, with the African Development Bank to enable the SEC to have a surveillance system.  

  • “This surveillance system is a system that allows the SEC, the regulator as a watchdog, to truly see transactions in the market live as they are happening, just to make sure that no market manipulation is happening.  
  • “Right now, we tried to get this information but basically, it’s with a lag but with the system that we are getting, it’s real-time. This will help this market; this will help the operators themselves.  
  • The regulator has their eyes on the market then people who are tempted to do any market manipulation will think twice before they do that. That is healthier for the market,” he stated. 

Yuguda emphasized that when capital markets are developed, the entire engine of savings and investments and the allocation of resources would have the highest expected returns.  

  • “It is made easy and if you do that, you will create more jobs in the economy and more revenues for the government.  
  • Life will be made easier for the investors and because of that, you will have a lot of interested parties that want to put in their own money to help the capital market to develop” he added. 

Why it’s important for the youth to participate in the capital market

Yuguda said that the youths must understand that the capital market is a viable platform for wealth creation, assuring them that the SEC and the market are working on how best to serve them. 

  • “We are striving to improve the way we deliver our products, to improve market efficiency, and to make the market attractive to them.  
  • “Most importantly, we are doing all we can to ensure that investors are adequately protected in the market and that they can get the benefits of their investments,” he stated.