Peter Egwuatu

The Securities and Exchange Commission (SEC) has appealed to the United States of America (US) SEC to partner with it in order to build a world class capital market for Nigeria.

Director General of the Commission, Ms. Arunma Oteh made the appeal during her presentation to the Sub-Committee of the United States House of Representatives Committee on Financial Services on International Monetary Policy and Trade to testify on the impact of  global financial crisis on the Nigerian economy.

She stated that SEC seek to strengthen its partnership with US SEC, adding “ we believe a strong partnership with the US SEC is critical to building a world class capital market and mutually beneficial in the fight against financial crime and in our common objective of maintaining capital markets that are of the highest integrity”.

According to her, “ We believe that a world class capital market is key for Nigeria as it seeks to better leverage its wealth in terms of natural and human resources to realize its full potential and address its socio-economic challenges. World class capital markets are enablers of socio-economic development because they foster a meritocracy, good corporate governance, innovation and entrepreneurship which in turn create job opportunities that will harness the skills and entrepreneurial zeal of the many hard working people that Nigeria is blessed with.

“World class capital markets fund business expansions and new opportunities and provide governments long term funds for financing infrastructure and other important projects that transform economies. World class capital markets facilitate the diversification of an economy, enable economic agents to pool, price and exchange risks, encourage savings and create wealth.”

Oteh noted that as the apex regulator of the Nigerian capital markets whose mandate is to regulate and develop these markets, the goal of the Commission’s  reform agenda is therefore to build a world class market that will enable Nigeria diversify its economy, finance its huge infrastructure needs and enhance its business climate and environment.

“A world class market is one that engenders investor confidence, has breadth and depth in terms of product offerings, is characterized by market integrity, has a sound regulatory framework, a strong and transparent disclosure and accountability regime, fosters good corporate governance and is a fair robust and efficient market place. While the global financial crisis has been devastating, we believe that it has created an opportunity for us to build a world class capital market given the lessons that we have learnt.

This testimony will outline the impact of the global financial crisis on Nigeria and key elements of the reform agenda that we have embarked upon to build a world class capital market.  It will also present the nature of the partnership that we have developed and the support we have received from multilateral organizations and the United States Securities and Exchange Commission” she added.

She stressed that the impact of the global financial crisis on the Nigerian economy was multifaceted as it  led to a dwindling of government revenues, affected the Nigerian currency, weakened the banking sector and fueled an unprecedented stock market crash, undermining confidence in the financial sector.