The Securities and Exchange Commission has reaffirmed its commitment to collaborating with various stakeholders in the market to support the impactful digitalization of the capital market.
Mr. Lamido Yuguda, the Director General of the SEC, provided this assurance during an interaction in Lagos. He acknowledged that the current demographics of the capital market are skewed towards an aging population, and addressing this is one of the key objectives of the Revised Capital Market Master Plan.
Yuguda emphasized the importance of encouraging capital market operators to embrace technology. He acknowledged that the younger generation prefers a seamless digital experience when accessing the market, rather than dealing with cumbersome paperwork. The SEC recognizes this shift and aims to facilitate a more user-friendly and technology-driven approach.
Highlighting an example of their support for innovation, Yuguda mentioned the MTN IPO in 2022, where the Commission backed the electronic-IPO (e-IPO) initiative by Chapel Hill Advisory.
This innovation allowed over 100,000 new accounts to be opened on the Central Securities Clearing System (CSCS), with a significant number belonging to youths and women. The SEC views these demographics as critical to sustainable growth and aims to create an environment that caters to their needs.
Yuguda further mentioned ongoing efforts to enhance the Know Your Customer (KYC) process and make various improvements to streamline operations. These initiatives are geared towards making the capital market more accessible and user-friendly, particularly for the younger generation.
By fostering digitalization and technological advancements in the capital market, the SEC aims to create an environment that supports growth, inclusivity, and efficiency, while catering to the preferences and needs of market participants.
