The Director General Securities and Exchange Commission (SEC), Dr. Emomotimi Agama has reiterated that identity management issues when solved will provide lasting solution to the issue of unclaimed dividends, reduce the barriers of entry to the market and make the market more attractive to the youth segment whose participation is currently very low.
He stated that the resolution of identity management issues would help reposition the Nigerian capital market for greater potential.
Agama who stated this at a Workshop on Identity Management for the Capital Market held in Lagos, on Wednesday, said the identity management system currently being developed by the market will tackle the lingering identification issues.
The SEC DG stated that the aim of workshop is to bring together stakeholders and industry players to discuss and seeks ways of addressing the lingering issue of identity management in the capital market.
These issues he said, have plagued the market for a while, contributed to the increasing quantum of unclaimed dividends which seem to have defied all efforts to stem over time, and negatively affected the attraction and competitiveness of the market.
He said "In view of the promise to stem this undesirable trend going forward, the Commission is very passionate about this initiative because its success would portend great potentials for our market.
"This journey began in the year 2018, following discussions at the 3rd Capital Market Committee (CMC) meeting of the year, on the need to address legacy identity management issues in the market. The Securities and Exchange Commission, therefore in January 2019, set up an in-house committee on the subject. The Committee was tasked with identifying issues surrounding identity management in the market, engaging with relevant stakeholders to document and proffer solutions, and make recommendations to Management.
Agama said that in a report submitted by the in-house Committee to Management, it stressed the need to consolidate investors' data and seek ways and means to finding a lasting solution to this monster plaguing the market.
Following the recommendations of the Committee, the SEC DG said the Commission, in 2021, dissolved the in-house Committee and set up a market-wide and bigger Committee, to undertake a more intensive study of the depth of the Nigerian identity crisis , and more specifically, in the capital market and articulate actionable and measurable solutions to the lingering issues: harmonise the various databases of investors in the capital market with a view to engendering data accuracy, and addressing the absence of a central repository of investors' data for the entire spectrum of the Nigerian capital market.
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According to him , "The Committee, graciously chaired by Mr. Aigboje Aig-Imoukhuede, has its membership drawn from leading market players and institutions across the Nigerian capital market ecosystem, including the chief executive officers of Nigerian Inter-Bank Settlement System (NIBSS) Plc and the National Identity Management Commission (NIMC).
"In the course of its work, the Committee engaged the services of Ernst and Young (EY) as consultants to assess the current state of the capital market identity management system, undertake a cross-jurisdictional peer review and develop a future-state identity management framework for the Nigerian Capital Market. Here at the workshop today, EY would be providing insights into the research undertaken on our market vis-à-vis other jurisdictions and proffer solutions to our identity management challenges.
He stated that the postulations and recommendations of EY shall be the subject of deliberation for all stakeholders at the workshop which is hoped to assist in proffering a lasting solution.
In his remarks, Chairman of the Committee, Mr. Aigboje Aig-Imoukhuede said the work of the committee will assist capital market operators elevate their performances and commended the SEC for its suppose to the committee.
