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Nigeria: Consolidation - SEC DG Confirms Infractions by Operatorb
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This Day (Lagos)
7 May 2008
Posted to the web 7 May 2008
Stanley Nkwazema
Abuja
Director-General of the Securities and Exchange Commission(SEC), Mr Musa Al Faki, yesterday, told the Joint Committees of the House of Representatives on Capital Market, Banking and Currency that while over N250 billion had come into the Nigerian economy by way of Direct Foreign Investments and over $2 billion was raised by Nigerian banks through Global Depository Receipts as at December 2007, operators also violated the rules.
Al-Faki who was speaking at the public hearing on the unsatisfactory practices in the post-consolidation of the banking industry disclosed that SEC had suspended 42 operators for breaching various rules just as 13 others were referred to the Economic and Financial CrimesCommission (EFCC) between 2007 and 2008 for various financial crimes.
According to the DG, "The attractive fundamentals of the capital market are driving considerable foreign interest in the market and enhancing its global visibility and competitiveness.
"The market capitalisation as percentage of GDP reached 52 per cent in 2007, in contrast to 28.3 per cent in 2006 and 13.7 per cent in 2003. Nigeria also ranks amongst markets with the highest returns on investments (76 per cent in 2007)."
While agreeing that the Commission has not lived up to expectation in certain aspects of its regulatory functions, Al-Faki told the Joint Committee that SEC wants more powers to enable it arrest and prosecute those who violate the laws.
Al-Faki's assertion came just as the Managing Director of Access Bank, Mr Aig Aigboje Imokhuede, told the House yesterday that while the bank has its shortcomings,challenges have also arisen out of the successes it has recorded so far.
Imokhuede who was defending his bank on alleged infractions in the course of its return to the market after capitalisation explained that in the course of reviewing its books after the Initial Public Offer of 2004, "we grew more than we expected and we had to return to the market."
According to him: "We went to the market with approval to raise the sum of N100 billion but at the end of the day we had an over subscription of N138 billion. We should have done the right issue.
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But we tried to accommodate the existing shareholders."
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