The Securities and Exchange Commission has charged capital market operators to develop technology that would enable them to constantly stay ahead of emerging and rapidly changing economic and business trends.
According to the commission, this would help to boost operations of dealing members and attract young investors to the equities market.
Director General of the SEC, Lamido Yuguda in an interactive session with Journalist at the weekend said that the youths must understand that the capital market is a viable platform for wealth creation, adding that there is need for operators to make conscious effort to boost automation of their processes by leveraging on relevant technology.
He expressed the commission’s resolve to continue to collaborate with various market stakeholders to support impactful digitalisation of to further develop the capital market.
Yuguda also assured young investors that the commission would intensify efforts in addressing perennial issues constituting disincentives to the young people in accessing the market.
“We want to assure young investors that the SEC and the market is working on how best to serve them. We are encouraging the capital market operators to develop technology. The youths do not want to come in and start filling five pages form, they just want to pick their phones and make their investments.”
Efforts to woo young people, especially those in the Financial Technology (Fintech) space to the stock market have been on the front burner in recent times.
The nation’s bourse had recently assured that the exchange has developed a focused strategy that would help to address major constraints such as listing rules and other concerns that have pushed fintech firm to source for offshore capital.
The exchange disclosed that the exchange is spearheading a transformation drive that would focus on digitising its processes and operations across the value chain to attract this segment of investors to the Nigeria capital market.
It added that the exchange would work with the government and regulatory authorities to open up the entire capital market and make it more appealing to early-stage companies.
Investigations revealed that Nigerian fintech firms are approaching investors and getting funded, especially from venture capitalists (VC), in countries like the United States, United Kingdom, Switzerland and Belgium.
Experts had also argued that these venture capitalists have invested a huge amount of money in emerging financial services startups, thus, making it possible for fintech firms to grow and access more capital offshore.
Yuguda said the demographics of the capital market currently is graying adding that it is one of the problems the commission is currently tackling with the revised capital market master plan.
He cited the MTN electronic IPO held in 2022 issued by Chapel Hill Advisory, stating that the issue enabled over 100,000 new accounts to be opened on the CSCS, most of which belong to the youths and women segment, thereby highlighting the benefits of electronic-IPO (e-IPO) in the market.
“That is why we are improving our Know Your Customers (KYC); we are improving so many things to make it easier for them. We need Fintechs in our market because we see them as an important gateway for youths to enter the market. We are conscious of that and we are working towards it.”
Yuguda also stressed that the commission is striving to improve on its product delivery and investors’ protection mechanism to enhance efficiency, make the market more attractive and generate bumper harvest.
The SEC boss said the commission signed an MoU with the African Development Bank (ADB) last year to enhance its surveillance system.
The system is a system that allows the SEC, the regulator as a watchdog, to truly see transactions in the market live as they are happening, just to make sure that no market manipulation is happening.
Yuguda also emphasised that when capital markets are developed, savings, investments and allocation of resources would generate huge returns.
“Before now, if we try to get information, we encounter some hitches but with a lag but with the system, it is real time. This will help the market and operators themselves.
Director General of the SEC, Lamido Yuguda in an interactive session with Journalist at the weekend said that the youths must understand that the capital market is a viable platform for wealth creation, adding that there is need for operators to make conscious effort to boost automation of their processes by leveraging on relevant technology.
He expressed the commission’s resolve to continue to collaborate with various market stakeholders to support impactful digitalisation of to further develop the capital market.
Yuguda also assured young investors that the commission would intensify efforts in addressing perennial issues constituting disincentives to the young people in accessing the market.
“We want to assure young investors that the SEC and the market is working on how best to serve them. We are encouraging the capital market operators to develop technology. The youths do not want to come in and start filling five pages form, they just want to pick their phones and make their investments.”
Efforts to woo young people, especially those in the Financial Technology (Fintech) space to the stock market have been on the front burner in recent times.
The nation’s bourse had recently assured that the exchange has developed a focused strategy that would help to address major constraints such as listing rules and other concerns that have pushed fintech firm to source for offshore capital.
The exchange disclosed that the exchange is spearheading a transformation drive that would focus on digitising its processes and operations across the value chain to attract this segment of investors to the Nigeria capital market.
It added that the exchange would work with the government and regulatory authorities to open up the entire capital market and make it more appealing to early-stage companies.
Investigations revealed that Nigerian fintech firms are approaching investors and getting funded, especially from venture capitalists (VC), in countries like the United States, United Kingdom, Switzerland and Belgium.
Experts had also argued that these venture capitalists have invested a huge amount of money in emerging financial services startups, thus, making it possible for fintech firms to grow and access more capital offshore.
Yuguda said the demographics of the capital market currently is graying adding that it is one of the problems the commission is currently tackling with the revised capital market master plan.
He cited the MTN electronic IPO held in 2022 issued by Chapel Hill Advisory, stating that the issue enabled over 100,000 new accounts to be opened on the CSCS, most of which belong to the youths and women segment, thereby highlighting the benefits of electronic-IPO (e-IPO) in the market.
“That is why we are improving our Know Your Customers (KYC); we are improving so many things to make it easier for them. We need Fintechs in our market because we see them as an important gateway for youths to enter the market. We are conscious of that and we are working towards it.”
Yuguda also stressed that the commission is striving to improve on its product delivery and investors’ protection mechanism to enhance efficiency, make the market more attractive and generate bumper harvest.
The SEC boss said the commission signed an MoU with the African Development Bank (ADB) last year to enhance its surveillance system.
The system is a system that allows the SEC, the regulator as a watchdog, to truly see transactions in the market live as they are happening, just to make sure that no market manipulation is happening.
Yuguda also emphasised that when capital markets are developed, savings, investments and allocation of resources would generate huge returns.
“Before now, if we try to get information, we encounter some hitches but with a lag but with the system, it is real time. This will help the market and operators themselves.
“The regulator now has their eyes on the market. People who are tempted to do any market manipulation will think twice before they do that. That is really healthier for the market,” he stated.
