DG SEC

The Securities and Exchange Commission has expressed the need for the capital market to be strengthened to accelerate domestic production and employment given the direct correlation between increase in production and job creation.

 

To achieve this, Director General of the SEC, Mr. Lamido Yuguda said there is the need to leverage the capital market for intermediation by facilitating access to capital.

 

This he said can be done by making it easy for corporates to access long-term finance in an efficient manner, the capital market enhances the production levels of companies, thereby improving the capacity of such companies to expand their operations and employ additional labour.

 

Lamido spoke at the Annual workshop of the Chartered Institute of Stockbrokers with the theme “Leveraging the Financial markets to achieve double digit economic growth for Nigeria” held in Abuja Thursday.

 

The SEC boss posited that it should truly not be difficult to achieve double digit growth in Nigeria given that most key factors of production like a large vibrant youthful population, arable land, abundant rainfall, good drainage, and a large and growing pool of savings are available.

 

He said “Infrastructure is the area where we have a major problem, and here I mean roads and rail transportation, power generation and distribution, health infrastructure, and the like. I believe the capital can play a vital role in the financing of infrastructure and forums such as this one would do well to dwell on this important subject.

 

“Recall that at independence in 1960 the domestic savings pool was rather limited, yet the new nation was able to mobilise adequate funds from both domestic and foreign sources to fund the construction of highways, railways and large power projects. These same projects are in a dismal state today when the population has grown more than threefold. The Commission is increasingly focusing its attention on this subject because of its impact on economic development and the quality of life of our citizens”.

 

According to Yuguda the theme of the workshop “Leveraging the Financial Markets to Achieve Double Digit Economic Growth for Nigeria” is very relevant, particularly for a developing economy like Nigeria. With a GDP growth rate of -1.92% in 2020 and an IMF growth forecast of only 2.5% for 2021, Nigeria requires higher and preferably double-digit growth rate to be able to reduce poverty and provide for the welfare of its citizens. In addition, he said there is a need to urgently address the country’s high unemployment rate which currently