New SEC DG assures Nigerians of vibrant market

The acting Director-General, Securities and Exchange Commission (SEC), Mr Mounir Gwarzo,  has assured Nigerians of the commission's readiness to ensure a vibrant capital market that will attract both local and international investors.

This is contained in a statement issued by the commission in Lagos on Wednesday.

The statement said that Gwarzo gave the assurance at the commission's headquarters in Abuja when he received members of the Chartered Institute of Stockbrokers (CIS).

He said the current management would strive to develop domestic investment in the market, both retail and institutional investors.

“We will step up to reach out to the market and improve investment. On the international side, what is most important is the enabling environment.’’

According to Gwarzo, ``right now, the rules are very friendly and that is why we keep changing them from time to time to suit best practices and attract investors''.

He said that the commission would embark on investment in education both for retail and institutional to improve the level of investment from the domestic side.

Earlier in his remarks, Mr Albert Okumagba, CIS President and Chairman of the Governing Council, said that foreign investors control over 60 per cent control of the Nigerian stock market.

Okumagba said that the current situation was not good for the market, addting that domestic investors should be encourage to increase their participation.

“The level of participation of our locals is effectively less than three million when ideally over 80 million of our people should be in the market.

"Our coverage of insurance assets in Nigeria is not up to two per cent of insurable asset.

``If we can increase from two to 20 per cent and then to 50 per cent, we will be shocked at the kind of contribution that insurance can make,” he said.

On insurance coverage, Okumagba expressed dissatisfaction on level of participation, adding that pension coverage was about eight per cent.

"If Nigerians that are supposed to be captured by the pension reform act come on stream, we can do multiples of the N4.7 trillion," he said.

"We believe that some of the factors that are holding the market down today will soon ease off.

``When the issues of security, elections and crude oil prices are done with, the market will begin to stabilise," he said.