By Musa Adamu
Disturbed by the dwindling operations of the Capital Market in the last few years in Nigeria, the Senate has promised to put legislations in place that would revolutionize the sector.
This was as the Securities and Exchange Commission (SEC), said that it was set to introduce financial technology to strengthen the virtually comatose capital market in Nigeria.
In his opening speech in Abuja on Wednesday at an interactive session with stakeholders from the capital market sector, the Chairman, Senate Committee on Capital Market, Senator Ibikunle Amosun (APC Ogun Central), promised that the Senate would make laws to strengthen the sector.
He said that the meeting became very imperative as the country’s economy had been facing serious challenges occasioned by the outbreak of COVID-19 pandemic and the recent EndSars protests across the country.
According to him, the Senate is not unaware of some of the challenges facing the growth of the Nigerian Capital Market, assuring that the Committee, which oversights the industry would support with necessary legislations to address the problems and propel the Nigerian Capital Market into greatness.
Amosun further stressed that there was need to strengthen the Commodity Exchanges (CX.) and make the market robust and functional.
He said “It is our firm belief that we can work towards domestication of our product to encourage local investors.
“The Capital Market needs to re-activate our alternate Market, and bring on board unlisted multinational companies, in order to develop a robust Capital Market.
Meanwhile, the Director-General of the Securities and Exchange Commission (SEC), Lamido Yuguda, at the event stated that the Capital Market would soon be strengthened with Finance Technology.
According to him, Fintech relates to any business that uses technology to enhance or automate financial services and processes; thereby fixing problems in financial infrastructure.
He explained that Fintech companies operate by receiving information from customers before helping them make payment, refund a sale, look up details of a transaction, and set up a billing plan among other things.
Yuguda said “2020 saw the rise of fintech startups in Nigeria. In October, American fintech giant, PayStripe acquired a Nigerian counterpart, Paystack for over $200 million to expand into the African Continent.
On plans to launch into fintech, the SEC DG said “we are implementing the Fintech road map. We are also contextualising the regulatory independent framework to on board Fintech into the capital market.
“We have just released draft rules for the crowdfunding in our regulation. We have received set of comments from the market and very soon we will be releasing these rules to the public.”