25 December 2012

Nigeria: Brokers Hail Appointment of New Board for SEC

Stockbrokers have hailed the appointment of a new board for the Securities and Exchange Commission (SEC), saying it would boost the operations of the apex regulatory body of the Nigerian capital market.

The last board of SEC vacated office last June while the Director-General, Ms. Arunma Oteh, has been running the affairs of the commission without a board. However, the Federal Government, at the weekend, announced a new board with Mallam Suleiman Abdu Ndanusa, a former director-general of the commission as chairman.

Other members are: Mallam Mounir Gwarzo; Mrs. Sa'adatu Bello; Mr. Zakawanu Imhobobho Garuba; Mr. Adefunke Abiodun; Mr. Ugochukwu Ikemba.

Reacting to the development Monday, the Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike, said the appointment would enhance the operations of the commission.

"It has been long overdue because the last board left office last June. With a new board some of the actions that needed board's approval that have been delayed can now considered. We are also pleased with the inclusion of some experienced people on the board, especially the chairman, who was once a DG. This is a good development for the regulation of the market," Madubuike said.

He therefore, advised the board to work in harmony and take proactive decisions that would sustain the recovery being witnessed in the market.

"For instance, SEC came out with a list of 35 stockbroking firms, saying their registration has been withdrawn. It is good a move but such information should be put in better perspective. The broking firms referred to have been out of operations for over four years. But investors may not know this. We only hope that the new board would address how the commission send its market sensitive information out so as not to create panic this time that the market is witnessing gradual recovery," he said.

Meanwhile, trading at the stock market remained negative as profit-taking persisted. The Nigerian Stock Exchange (NSE) All-Share Index declined by 0.20 per cent to close at 27,346.65, while market capitalisation shed N17.7 billion to close at N8.737 trillion.

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