Yuguda: SEC Committed to Developing Commodities Ecosystem
Kayode Tokede
The Director General, Securities and Exchange Commission (SEC), Lamido Yuguda has stated that the commission is committed to developing the commodities ecosystem as potent way forward in Nigeria’s quest for sustainable foreign exchange earnings and economic development.
The DG was represented by Lagos Zonal Director of the commission, Hafsat Rufia at the 2022 Finance Correspondents Association of Nigeria (FICAN) conference with the theme – “Boosting Domestic Capacity for Sustainable Export Earnings” in Lagos during the weekend.
The DG who was speaking on, “Sustainable Foreign Exchange Earnings: The Regulatory perspective,” he said Nigeria has experienced a significant decline in foreign exchange earnings as well as revenues accruable to the federation, mainly due to volatility in international crude oil prices.
According to him, “In the past few months, this has been exacerbated by low oil production and oil theft in the country. This has often resulted in foreign exchange shortages and balance-of-payment problems.
“These recent developments have again brought to the fore the important issue of sustainable foreign exchange earnings. Foreign exchange is a scarce resource that needs to be efficiently managed with a view to achieving macroeconomic stability, as well as avoiding balance of payments and external reserve problems.
“Sustainable levels of foreign exchange earnings and external reserves are the backbone of any nation’s exchange rate. They ensure stability of the rate and low levels weaken a nation’s currency.
“To this end, the Federal Government of Nigeria is intensifying efforts towards diversifying the economy and reducing overdependence on crude oil.”
He noted that the Nigerian capital market has a significant role to play in contributing to sustainable foreign exchange earnings.
He explained the capita market can attract more foreign portfolio and direct investments which is expected to help stabilize the value of the naira.
To do this, the market must be more competitive, as other markets also seek the same foreign capital inflows. The 10-year Nigerian Capital Market Master Plan (2015-2025) is built around four strategic themes one of which is competitiveness.
It seeks to promote competitiveness by establishing practices to improve transparency, efficiency and liquidity and to attract sustainable interest in the capital market from domestic, as well as foreign investors and participants. This objective clearly focuses on the various elements that make capital markets competitive as a choice for capital and portfolio inflows.
The said further that the Commission would continue to advocate strategic initiatives to develop the capital market as a robust and sustainable source of foreign exchange for the country.
