By NKIRUKA NNOROM

Shareholders in the Nigerian capital market have called on the Nigerian Stock Exchange, NSE, to take steps to educate investors on how to benefit from the recently inaugurated Investors’ Protection Fund.

Some of the representatives of shareholders’ group, who applauded the management of the NSE over the idea, said that without adequate enlightenment, enough demand may not be made on the Fund when the need arises, which may affect its effectiveness.

Mr. Augustine Anono, Chairman, Nigeria Professional Shareholders Association, said: “Nigerian Stock Exchange must set out modalities on how investors can benefit from the Fund. They have to state this categorically.  There is need to organise various fora to educate the public. A lot of the retail investors are not aware of it.”

He expressed fears that there could be possible diversion of the fund, arguing that people who actually need it might not get it if it is not properly managed, stressing “So, there should be thorough screening for those seeking that kind of fund.”

He explained that the initiative was borne out of the need to re-energise investors to return to the capital market after the bitter experience they had during the global melt down a few years ago.

Speaking in the same vein, Chief Timothy Adesiyan, President, Nigerian Shareholders Solidarity Association, NSSA, urged the Exchange to ensure that there is full disclosure on the fund, saying that what impeded the functionality of the first IPF established by the NSE was lack of disclosure.

His words: “The fund is not just being set up for the first time. I remember in 2007, in a seminar organised by Nigeria Institute of Bankers and Securities and Exchange Commission, SEC, this issue came up and a representative of World Bank at the seminar confirmed that the Fund was in existence, including Investors’ Training Fund, but we don’t know anything about their utilisation.

“The first thing is non-disclosure of material facts, this is because people who knew about the existence of the Fund the initial time it was established did not want people who could benefit from it to know that such fund was existing. Thus, there was no demand on the Fund due to ignorance.