Senate mulls laws to boost capital market

Senate has disclosed plans to make laws that would boost the capital market owing to the dwindling operations of the sector in the last few years in the country.

This was even as the Securities and Exchange Commission, SEC, said that it was set to introduce financial technology to strengthen the virtually comatose capital market.

Speaking at an interactive session with stakeholders from the sector, the chairman Senate Committee on Capital Market, Senator Ibikunle Amosun, promised that the upper legislative chamber would make laws to strengthen the sector.

According to Amosun, the country’s economy had been facing serious challenges occasioned by the outbreak of COVID-19 pandemic and the recent EndSARS protests across the country.

The former Ogun State governor also stressed the need to strengthen the Commodity Exchanges, CX. and make the market robust and functional.

“It is our firm belief that we can work towards domestication of our product to encourage local investors. The capital market needs to re-activate our alternate market, and bring on board unlisted multinational companies, in order to develop a robust capital market.

“As stakeholders in the capital market, I urge you all to see this interactive session as an avenue for us to brainstorm on ways we can collaborate to meaningfully strengthen the capital market so that it can continue to function as the gateway to economic development of our nation.

“This interactive meeting is very apt, especially coming at a time like this when concerted efforts are required to revive our economy, which has been negatively affected due to the outbreak of Covid-19 and the recent EndSars protest.

“This is the most crucial moment for our economy, as Nigeria and indeed the whole world continue to grapple with economic hardships – such that has not been witnessed before.

“Consequently, it behooves on us as stakeholders to come together with a view to reviving the economy and strengthening the confidence of the much needed investors in the capital market.

“The Senate is not unaware of some of the challenges facing the growth of the Nigerian Capital Market. It is our desire as the committee saddled with the Oversight responsibility to support you with necessary legislation to propel the Nigerian Capital Market into greatness. Please be assured that we will expedite action on the passage of relevant laws, amend, and enact new laws where necessary.

“There is equally the need to strengthen our Commodity Exchanges (CX.) and make the market robust and functional.

Furthermore, it is our firm belief that we can work towards domestication of our product to encourage local investors. The Capital Market needs to re-activate our alternate Market, and bring on board unlisted multinational companies, in order to develop a robust capital market.

Meanwhile, the Director-General of SEC, Lamido Yuguda, at the event yesterday, stated that the Capital Market would soon be strengthened with Finance Technology.

According to him, Fintech relates to any business that uses technology to enhance or automate financial services and processes; thereby fixing problems in financial infrastructure.

He explained that Fintech companies operate by receiving information from customers before helping them make payment, refund a sale, look up details of a transaction, and set up a billing plan among other things.