Financial experts seek more realistic budget
Some financial experts have called for a
more realistic national budget that will fast-track infrastructural
development in the country.
This was part of the resolutions reached at the end of the Securities and Exchange Commission yearly budget seminar.
The seminar which held in Lagos on
Thursday, had as its theme ‘Leveraging the 2020 budget and Finance Act
for the growth of the Nigerian capital market’
The stakeholders disapproved of the huge budget variance the company had witnessed over the years.
According to them, budget variances over
the years have been large and this means efforts need to be made to
have more realistic budgets.
Participants also recommended the
provision of conducive business environment and credit enhancements for
the Small and Medium Scale Enterprises to thrive.
According to a communique at the end of
the seminar, there is need to create more hedging opportunities in the
Nigerian capital market, as these have implications for market liquidity
The communique said, “The government
needs to work towards encouraging the participation of the private
sector in the Nigerian business environment.
“The power and agricultural sectors are
key sectors where in-depth reform and partnership with the private
sector are important. There should be partnership with the private
sector to mobilise domestic resources, create quality jobs and lift
people out of poverty.”
Participants agreed on the need to
leverage technology for trade and focus on adding value to the
agricultural sector which is currently very low-paying.
The sector, they posited, needed to
become more beneficial to those involved and this could be done through
means such as provision of power for crop preservation, thus
eliminating post-harvest losses.
In her opening address, the acting
Director General of the SEC, Ms Mary Uduk, emphasised the importance of
budgets in an economy and by extension in the capital market.
Giving a breakdown of the activities of
the organisation, Uduk said the commission’s enforcement efforts in 2019
yielded some positive results.
She said, “A breakdown is as follows:
number of complaints received,167; number of complaints resolved,102;
amount recovered for investors: N100,111,626.3; units of shares
recovered for investors: 8,848 units of various companies.”
She gave the number of Illegal
operator/Ponzi schemes sealed as four and the number of Illegal
operators’ bank accounts cautioned/blocked by the SEC Police Unit as
The total amount in the blocked accounts
stood at N1.12bn; value of real estate properties cautioned under
investigation, N1,23bn while the number of capital market fraud cases
being prosecuted stood at eight.
The SEC boss gave the total amount generated from penalties as N194.48m.
Uduk said, “In 2019, the commission
witnessed an upsurge in the activities of Ponzi schemes in Nigeria. The
commission went after many of the promoters and directors of such
schemes, securing a conviction last year and many others are presently
“We will continue to combat Ponzi
schemes this year. We intend to continue leveraging on the Memoranda of
Understanding that were signed between the commission and key
stakeholders like the Nigeria Financial Intelligence Unit and the
Economic and Financial Crimes Commission to strengthen our ability to do
Source: Punchng, February 14, 2020