20 February 2013

Nigeria: Zero Allocation to SEC May Cost Nigeria Over N1 Trillion - Analyst

Unless the National Assembly reversed its decision on exclusion of the Securities and Exchange Commission (SEC) from the 2013 budget, the economy may lose over N1 trillion, a financial analyst has said.

The chief executive officer, Lambeth Trust & Investment Company Limited, Mr. Lambeth Adonri, speaking to Leadership exclusively, said the zero allocation to SEC by the National Assembly was impacting negatively on the effectiveness of SEC's regulatory supervision of the capital market.

According to Adonri, "Primary Market remains inactive possibly because several issuers are encountering setbacks in processing of their applications. With the recovery of the Secondary Market, one can easily project that the action of the National Assembly will cost the Nigerian economy over N1 trillion of equity capital that would have been formed this year by the Capital Market.

He noted that if in pursuit of removal of the DG from office, the National Assembly takes a measure that is capable of crippling the capital market, the economy may suffer.

Adonri called on the National Assembly to reverse the decision on zero allocation forthwith to prevent grave consequences to the economy of Nigeria.

Recall that following the exclusion of the Securities and Exchange Commission (SEC) from the 2013 budget, some key operators in the nation's capital market have been calling on all parties involved to engage in dialogue to help resolve the matter to avert crisis that may result from the zero allocation.

The President of the Chartered Institute of Stockbrokers (CIS), Mr Ariyo Olushekun, said it was high time both parties in the dispute closed ranks to avoid another crisis in the market.

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