SEC Addresses FTSE-Russell and MSCI Reclassifications Amid Forex Challenges in Nigerian Securities
The Securities and Exchange Commission (SEC) attributes the recent reclassifications of Nigerian securities indices by FTSE-Russell and MSCI to prevailing foreign exchange liquidity challenges, impacting investor confidence. Lamido Yuguda, SEC Director General, shared these insights during the post-Capital Market Committee (CMC) press briefing in Lagos.
Despite challenges, Yuguda reported positive milestones in the Nigerian stock market, with the All-Share Index surpassing 70,000 points, marking a 30% increase this year. Addressing high interest rates on government treasury securities, he emphasized the need for strategic measures to attract more investments.
Yuguda expressed optimism about unlocking the capital market's full potential through digitization, market modernization, HR restructuring, and collaborations with stakeholders.
Daisey Ekineh, Chairperson of the Technical Committee on the Commodities Trading Ecosystem, highlighted ongoing engagements with the Standards Organization of Nigeria (SON) to adopt additional commodity standards. Initiatives include introducing commodity derivatives and collaborating with the National Insurance Commission (NAICOM) to de-risk the ecosystem with tailored insurance products.
The E-Dividend Mandate Technical Committee provided an update on the collaborative project to enhance the e-Dividend portal, aiming for a launch by November 30, 2023.
The Non-Interest Technical Committee, led by Mrs. Hajara Adeola, outlined key developments, including the successful issuance of the 6th FGN Sukuk. Plans include engaging stakeholders for Shariah-compliant liquidity instruments in the commodities market and short-term Sukuk creation with the Debt Management Office (DMO).
Despite challenges in the non-interest market, including lack of awareness and limited investment-grade corporate sukuk issuers, the committee remains committed to development efforts.
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