The Securities and Exchange Commission (SEC) has pledged support for the economic reforms of President Bola Tinubu.
Lamido Yuguda, SEC director-general, in a statement on Saturday, said the reforms are intended to revitalise the country’s economy and improve the standard of living of Nigerians.
Yuguda said on the president’s first day in office, there was a remarkable 5.23 percent surge in market capitalisation at the Nigerian Exchange Limited (NGX), driven by “optimistic anticipation of market reforms”.
“It is a fact that there are prevailing challenges arising from demanding macroeconomic conditions, constrained consumer spending, and rising operational costs,” he said.
“Despite these challenges, there remains a shared sense of optimism that ongoing rigorous reforms will rejuvenate the nation’s economy.
“I therefore pledge the resolute support of the Capital Market to the Federal Government in navigating these challenges for the country’s brighter future.”
Yuguda said Nigeria outperformed global indices on gains in the all-share index (ASI) and market capitalisation in the first half of 2023, an indication that the economy is being reflated.
On Tuesday, Nigerian stocks gained as the all-share index hit its highest level ever.
The SEC boss attributed the performance to several factors, such as “the appealing dividend yields offered by certain stocks, the recovery of corporate earnings, and a notable improvement in sentiments” among domestic retail investors.
“All the indicators reflecting investors’ involvement – including volume, value, and the number of transactions – had demonstrated consistent month-on-month increases throughout the first half of 2023,” he said.
Yuguda said the national assembly is currently reviewing the Investments and Securities Bill (ISB) 2023, which he said will enable the capital market to play a more significant role in national development.
He said the road ahead is “undeniably challenging” while calling on capital market operators to “step forward” and “make sacrifices” to help drive the country’s economic transformation.