BY PETER EGWUATU
The Capital Market  Committee, CMC, Retreat has been accepted and acknowledged by various stakeholders as one of the developments that has happened in the Nigerian capital market and has jointly contributed to the recent recovery and growth of the market.

Nevertheless, the CMC retreat has more roles to play towards building investor confidence in the market. More stakeholders are needed to join the various committees to be able to inject ideas that will further move the market.
Greater participation of stakeholders should also culminate in building trust in the market, thereby attracting retail investors, who had hitherto lost confidence in the market.

Also, the retreat should afford participants an excellent opportunity to interact with key stakeholders in the capital market; opportunity to engage with and have positive interactions with knowledgeable speakers and participants, both domestic and international; and networking opportunities with other issuers, operators, regulators and other stakeholders.

The CMC retreat which was introduced in November 2011 by the Director-General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, started with operators and regulators, but has now been extended to shareholders, which is a positive development.

It should be noted that CMC, which is a body of regulators, operators and other stakeholders usually meet every quarter to discuss issues in the market. The CMC is the organ that coordinates the Nigerian capital market community and it is currently headed by Oteh. CMC comprises representatives of SEC, Capital Trade Points and all capital market trade groups with the aim of market development and product creation, market infrastructure development, market rules and compliance, and investor confidence building.

Commenting on the CMC retreat, Managing Director, UBA Trustees, Mrs. Toyin Sanni, expressed optimism that CMC retreat will continue to foster cohesion and build alliance among capital market stakeholders, which would ultimately enhance performance and attract more investment in the market.

In his comment, Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike, said: “The retreat has fostered cohesion and given us a platform to look at the future of the market. It has made engagements  flawless and frictionless and has enabled us to engage with one another, interact with one another and build  all  kind of alliances that are requirement for capital market transactions  because no one group can do it all in the market.”

Mr. Oderrinde Taiwo, Chairman, Proactive Shareholders Association of Nigeria, PROSAN said, “The SEC is doing everything possible within its power to ensure the growth and development of the Nigerian capital market. Now that the shareholders are being carried along in its stride to develop the market, it is a welcome development that will see positive achievement. Every stakeholder has a part to play in developing the market.”

Mallam Mukhtar I Mukhtar of Shareholders Trustee Association of Nigeria, said, “The recent retreat, which involved shareholders has improved the quality of awareness of capital market operations, even as stakeholders interface and build alliances with experts from other Exchanges to attract investment and new issues. We expect it will continue to address issues in the market as they unfold.

The Nigerian capital market plays an integral role in the Nigerian financial market, comprising of the Debt market, valued in excess of $37.9 billion as well as the equity market, which had an approximate capitalisation of $74 billion as at Friday 27th September 2013 with over 1169 Registered Operators.

Recall that CMC held its maiden retreat themed “The Nigerian Capital Market in 2012: Issues, Challenges and Prospects” in Uyo, Akwa Ibom State in December 2011. The very successful forum had over 150 participants including the host Governor, Godswill Akpabio of Akwa Ibom State and members of his cabinet, the Director General of the SEC, and CEOs of the Nigerian Stock Exchange, NSE , the Abuja Commodities Exchange and the Central Securities Clearing System, CSCS.

Also present were chairmen and members of the various Capital Market Trade Groups, specifically stockbrokers, Issuing Houses, Trustees, Custodians, Registrars, Solicitors, Fund Managers and Reporting Accountants, and of Capital Trade Points and also capital market correspondents. The retreat also afforded an opportunity to showcase the development of the state, the achievements of the host administration, as well as the investment opportunities available to participants.

The second edition of the annual retreat and conference themed, “The Pivotal Role of the capital market in the Transformation Agenda of the Nigerian Economy” with over 300 participants was held in Warri, Delta State in November 2012 with the Excellency, Governor Dr. Emmanuel Uduaghan of Delta State, the Honorable Minister for Information, Ms Omobola Johnson, the Central Bank Governor, Alhaji Lamido Sanusi, and host of market operators.

The third edition of CMC was held between 27th – 30th November, 2013, at the Transcorp Hilton, Abuja, with the Federal Capital Territory as the main sponsor. The theme of the retreat was “Actualising Nigeria’s Economic Potential”. The retreat was expected to host over 600 participants from CMC Member Groups, and institutions. Guest speakers during the retreat include the Chairman, Securities and Exchange Commission of Brazil, Mr. Leonardo P. Gomes Pereira; the Nigerian Minister of Power, Professor Chinedu Nebo and the Executive Director of the Mo Ibrahim Organization, amongst others.

The benefits of the retreat so far had shown that it has helped stakeholders and operators to network among themselves; it has led to high level knowledge exchange between the Nigerian capital market (its key operators and regulators) and provided visibility enhancement with prospective clients/counterparties.