Leadership (Abuja)

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.

Ads by Google

Copyright © 2013 Leadership. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.