On the heels of a recent report that investment pledge to Nigeria declined by 67 percent in the first half of 2020, the Securities and Exchange Commission, SEC has disclosed that the automation of the capital market is key to attracting Foreign Direct Investment, FDI.
SEC’s Director-General, Mr. Lamido Yuguda in a meeting with Nigeria’s Minister of Communication and Digital Economy, Dr. Isa Pantami in Abuja disclosed that this automation will enable a cost reduction and an increase in capital market efficiency thereby bringing Nigeria’s capital market to the 21st century of technological innovations.
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He added that the automation of Nigeria’s capital market would make Nigeria a favorable destination for investors and contribute to Nigeria’s FDI.
“Presently, we have a lot of documents and papers being brought to the Commission for one approval or the other. We think that if we can digitize our processes and these documents are transmitted to us electronically, it will make it easier for the market that we regulate and also stimulate growth,” Yuguda stated.
The SEC DG further said that automation will enable a cost reduction and an increase in capital market efficiency, and called for the collaboration with the Ministry of Communication and Digital Economy to make the goal achievable.
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The regulatory body admitted that the global pandemic has shown the importance of technology in managing efficiency, as capital markets globally were left unaffected as they still worked efficiently.
On his part, Patanmi disclosed that the agency is willing to work with the SEC to automate Nigeria’s capital markets, as they are also willing to promote the nation’s digital economy thereby contributing to the growth of the country’s economy which has been heavily reliant on crude oil earning.
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Recall that the Nigerian Investment Promotion Commission, NIPC had disclosed in a recent report that in the aftermath of the scourge of the coronavirus pandemic, investment pledges by domestic and foreign investors to projects in Nigeria declined by 67 percent in the first half of 2020.
According to the report, as at the end of H1 of 2020, the proposed investment stood at $5.06 billion {N1.92tr} from $15.15 billion {N5.7tr} in the corresponding period in 2019 signaling an N3.8tr decline.
As a fallout, the SEC believes the automation of Nigeria’s capital market would make Nigeria a favorable destination for investors and contribute to Nigeria’s FDI.
