Nigeria: NECA, SEC join forces for organized business securities

The Nigeria Employers’ Consultative Association (NECA),in collaboration with the Securities and Exchange Commission (SEC), has pledged to foster the growth and enhance participation in the capital market.

In a bid to boost the capital market and facilitate business activities, the two organizations solidified their collaboration by launching the NECA/SEC Securities Issuers Forum (SIF).

SEC Director-General, Dr. Lamido Yuguda, revealed that the SEC has established a platform for regular engagements with the private sector. This platform aims to facilitate discussions on issues related to securities issuers in the Nigerian capital market. The goal is to encourage the exchange of ideas, address concerns, and collaboratively work on policies and regulatory measures that can support securities issuers effectively.

He suggested that involving NECA, as the primary umbrella for the organized private sector (OPS), could serve as a central point for fostering collaboration between the commission and OPS.

Yuguda highlighted specific areas of interest from the SEC, which encompass addressing issues such as the non-registration of securities of public unlisted companies and mitigating the trend of de-listings in the Nigerian capital market, among other concerns.

“We want to see a lot more issuance of securities by businesses. The capital market is there for them to raise money by issuing securities. We have seen a kind of lull in securities issuance, especially in the primary market. We want businesses to let us know why they are not coming to the market as before. We want to support them through better policies and better regulations.

On the benefit, he said: “It will allow businesses in need of financing to come to the capital market to raise the financing cheaper and increase employment generation because when businesses have investment projects that promise good, expected best of returns and can source cheap financing of the projects profitably, the ability to employ more people will increase.

“There will be better job creation for the whole country. That will then increase the disposable income of consumers for the generation of output. This translates to a virtual cycle. We are here in the significance the SEC places on the idea.”

Director-General of NECA, Adewale-Smatt Oyerinde, recalled that the engagement and inauguration of SIF in 2021, aided business activities such as the relief on filing of fourth quarter unaudited reports with the SEC by companies.

He mentioned that this collaboration facilitated the extension of a two-year grace period for public companies to meet the stipulated requirements of sections 60-63 of the Investment and Securities Act (ISA) 2007 regarding Internal Control over Financial Reporting. Additionally, it supported training initiatives focused on internal control over financial reporting.