Did you know that there is a partnership between SEC and NECA?
In 2021, the Securities and Exchange Commission (SEC) partnered with the Nigeria Employers' Consultative Association (NECA) to strengthen the Nigerian Capital Market. This collaboration aims to encourage businesses to approach the capital market for funding. This partnership has had a major impact on the Nigerian Capital Market.
Importance of the Partnership
The partnership between SEC and NECA seeks to promote the capital market as a viable option for business financing. By engaging with NECA, SEC aims to reach more businesses, including those that have traditionally been hesitant to tap into the capital market for funding.
Dr. Lamido Yuguda, the then Director General of the SEC, emphasized the importance of this collaboration, stating that the goal is to have more businesses list and participate in the capital market. He highlighted that the Nigerian Capital Market is the most liquid in Africa, and it is also accessible to the whole world.
NECA's Role
As a business voice in Nigeria, NECA plays an important role in this partnership. Through its extensive network of members, the Association promotes the benefits of capital market participation. NECA's Director General, Mr. Adewale-Smatt Oyerinde, highlighted the significance of the initiative, noting that the partnership with SEC is timely and necessary. He affirmed NECA's commitment to working together with SEC to create a more robust and inclusive capital market.
Impact on the Nigerian Economy
The collaboration between SEC and NECA, which would formally be launched this year, is set to be a game-changer for the Nigerian economy. This partnership is about getting more businesses involved in the capital market, which is a smart move for fostering economic growth. The more companies that join in, the more liquidity we get in the market, which is a magnet for foreign investment. Plus, this is not just about numbers on a screen; it is about giving businesses real access to long-term financing, increased visibility, and better liquidity. It is a clear signal that Nigeria is serious about building a robust financial ecosystem that benefits everyone.Top of FormBottom of Form
Conclusion
The partnership between the SEC and NECA is a significant development for the Nigerian capital market. By encouraging more businesses to get involved and understand the market better, this collaboration could lead to substantial economic gains and play a crucial role in advancing Nigeria's financial sector. It's a step that not only promises immediate benefits but also sets the stage for long-term growth and innovation in the sector.
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