SEC Recommits To Driving Debt Market Enabling Environment

The Securities and Exchange Commission (SEC) has reiterated its commitment to drive the debt market-enabling environment to boost investors’ participation.

The director-general, SEC, Mr Lamido Yuguda, stated this at the Capital Market Correspondents Association of Nigeria (CAMCAN) annual workshop held in Lagos. The theme of the workshop was: ‘Nigeria’s Public Debt and the Capital Market’.

Yuguda, who was represented by the executive commissioner, Operations, SEC, Mr Dayo Obisan, said the apex capital market regulating body is engaging the minister of Budget and Finance, Mrs Zainab Ahmed, to create a level-playing field for debt market, saying, by nature, the debt instrument is low risk.

Yuguda said, the commission would continue to fulfil its mandate of protecting investors and creating an enabling environment for market operators.

The divisional head, Business Support Services, Nigerian Exchange Limited (NGX), Mrs Irene Robinson-Ayanwale, commended CAMCAN for selecting the theme for the 2022 workshop, saying the debt capital market is dear to the Exchange.

She acknowledged the support the Debt Management Office (DMO) has granted to the Exchange over the years.

“Exchange always visits the DMO for different proposals and they are always granted. We hope the joint collaboration and support will continue because it is very key to the debt capital market,” she added.

Managing director, Forthright Securities & Investment Limited, Charles Egbunonwo said: “we are all aware of what is happening in terms of revenue and growing debts level in the economy.”

Also speaking, the first vice president, the Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada noted that, there was nothing wrong with government borrowing.

According to him, if the government does not borrow again, how do I sustain my profession? We have issuers that secure these securities and trading platforms.

“Without trading platforms, we cannot have stockbrokers. So, there is nothing wrong in government borrowing. The issue all around the world is whether these debts are sustainable. If our debt-to-GDP is doing well, what about service ratio to revenue that is over 90 per cent? What happened to the GDP?

“We seem to be comparing ourselves to big economies and the market capitalisation of five companies in the US is larger than the entire GDP of Africa. Why are we comparing ourselves to bigger economies? We cannot compare ourselves to the US and other bigger economies because there are some fundamental issues. The fundamental issue is the role of government to provide an enabling environment.

“Provide infrastructure, security among other things. If the government does not solve the issue of enabling the environment, it will be difficult to solve our problem of revenue and debt service.”