These approaches were two of the five strategies outlined by the President/Chairman of the CIBN Council, Dr. Ken Opara, on deepening the capital market.
Opara spoke during the Securities and Exchange Commission/Senate Committee on Capital Market Retreat for the year 2024.
The five strategies included enhanced regulatory frameworks, market infrastructure development, investor education and awareness, corporate governance & transparency and enhancement of the Alternative Securities Market.
On the Nigerian bourse, an Alternative Securities Market, otherwise known as ASeM, is designed for local emerging and small businesses that are already trading daily.
In his presentation, the CIBN boss noted that a continuous review and strengthening of regulatory frameworks, streamlining regulatory processes and enforcing compliance with international best practices will not only ensure investor protection, market integrity and transparency but also instill confidence among investors and stakeholders thereby constantly attracting new investors whilst retaining existing players.
He also stated that an improvement in the infrastructure of the capital market will lead to enhanced market efficiency which would in turn reduce transaction costs and further mitigate settlement risks. “With these impediments out of the way, the capital market would witness more investors and issuers,” he said.
To enhance corporate governance practices and improve access of SMEs to the capital market for growth and development, Dr. Opara noted that “Corporate governance and transparency as well as the enhancement of Alternative Securities Market needs to be taken seriously.
“These would ensure high investor confidence, market credibility and assist SMEs to achieve their desired growth in the capital market.”
The event had in attendance the Senate Minority Leader, Senator Abba Moro; the Chairman, Senate Committee on Capital Market, Senator Osita Izunaso; the Director General, Securities and Exchange Commission, Mr. Lamido Yuguda, Chairman, Investments and Securities Tribunal, Mr. Amos Azi and others.
In recent weeks, the Nigerian Exchange has been bullish as it hit and broke milestones repeatedly and saw some listed companies join the group of firms worth N1tn.
