Nigeria: Ongoing Economic Reforms Hold Promise for Nigeria’s Economy- SEC

The Securities and Exchange Commission (SEC) has lauded the ongoing multifaceted economic reforms initiated by the current administration, expressing confidence that these transformative measures have the potential to revitalize Nigeria’s economy and enhance the living standards of its citizens.

In a statement released by the commission, Director General Mr. Lamido Yuguda emphasized that the impressive 5.23 percent surge in market capitalization at the Nigerian Exchange Group (NGX) on President Bola Tinubu’s first day in office was fueled by positive expectations regarding market reforms.

Yuguda acknowledged the existing challenges stemming from demanding macroeconomic conditions, limited consumer spending, and escalating operational expenses. Nevertheless, he highlighted a shared optimism that the rigorous ongoing reforms would reinvigorate the nation’s economy. He pledged unwavering support from the capital market to assist the federal government in navigating these challenges and leading the country towards a brighter future.

Yuguda further noted that Nigeria had outperformed global benchmarks in terms of gains in the All Share Index (ASI) and market capitalization during the first half of 2023, signaling a reflation of the economy.

He attributed this exceptional performance to several factors, including the attractive dividend yields offered by specific stocks, the recovery of corporate earnings, and a noticeable improvement in sentiment among domestic retail investors. He pointed out that key indicators reflecting investor engagement, such as trading volume, transaction value, and the number of transactions, consistently showed month-on-month increases throughout the first half of 2023.

The director-general also highlighted the importance of the Investments and Securities Bill (ISB) 2023, which seeks to align regulations with the contemporary dynamics of the market. He mentioned that the bill is currently under consideration by the 10th National Assembly and expressed optimism that its passage into law would enable the capital market to make an optimal contribution to national development.