BY SAM OTUONYE

The Securities and Exchange Commission (SEC) has emphasized that investor education is a key prerequisite for a healthy market and the development of market confidence, adding that a well-informed investor base is crucial for the stability and growth of any capital market.

The Director General of the SEC, Dr. Emomotimi Agama, stated this during the opening of the 2024 International Organisation of Securities Commissions (IOSCO) World Investor Week (WIW), holding in Lagos.

He highlighted that investor education empowers individuals to make informed decisions and safeguard themselves against fraud, Ponzi schemes, misinformation, and excessive risk.

Agama, who was represented by the Executive Commissioner Operations of the SEC, Mr. Bola Ajomale, stated that Nigeria has witnessed increasing participation in the capital market, with more retail investors entering the fold saying that it also highlights the need to strengthen educational efforts, especially in this era of digital finance.

He said, “As financial products become more complex and technology-driven, from fintech innovations to cryptocurrency trading, it is critical and responsible for stakeholders to commit to equipping investors with the knowledge to navigate these
markets confidently and responsibly.

“World Investor Week provides a platform for us to reinforce this commitment. Throughout this week, we will engage with investors, discuss best practices, and focus on improving transparency and accountability in financial markets. I encourage all participants to take these opportunities to learn and share knowledge, so we can continue building a robust, investor-friendly ecosystem”.

The SEC DG said the focus for 2024 is apt and extremely timeous as it covers Technology and Digital Finance, Crypto
Assets, and Sustainable Finance, three critical areas that will shape the future of global capital markets adding that the reward potential is unimaginable but the risks are equally enormous.

“The rise of technology in finance is reshaping the way capital markets function, creating opportunities for greater efficiency, transparency, and inclusion. Fintech solutions are democratizing access to financial services, reducing transaction costs, and enabling faster, more secure operations across the market. In Nigeria, the rapid adoption of mobile technology and digital payments demonstrates the immense potential for growth in digital finance.

“As we embrace these innovations, the SEC assures the capital market that we work assiduously with other regulators to adopt frameworks that protect investors. Our desire is to ensure that technological advancements are deployed responsibly and that market participants understand the risks associated with digital finance, such as cybersecurity threats and data privacy concerns”.

The DG said Nigeria has emerged as a key player in crypto markets, particularly in peer-to-peer transactions stating that the space remains highly volatile, and investor protection is paramount.

He said the SEC has developed and released frameworks for regulating Virtual Asset Service Providers (VASPs) and shall continue to address risks such as fraud, money laundering, and market manipulation, while also fostering innovation in a safe and transparent manner.

According to him, “Our frameworks balance the need to encourage innovation within a safe, regulated environment whilst maintaining investor protection. Crypto assets must be subject to clear regulatory oversight that ensures market integrity without stifling growth.

“Through this approach we have created a Regulatory Incubation Programme within which new technologies and digital assets can be tested and approved for public use. The SEC has also developed an Accelerated Regulatory Incubation Programme specifically to encourage non-registered crypto operators (who are currently extremely high risk and banned) to present themselves for regulatory oversight. I must also add that as the aforementioned framework continues to evolve, enforcement action against illegal crypto platforms, ponzi schemes and market abuse will significantly increase in severity”.

He said the third focal area, which is sustainable finance, is not only a global priority, but it is also a pressing issue for Nigeria as environmental, social, and governance (ESG) factors are becoming more important in investment decisions.

He said as Nigeria celebrates the growth of the Nigerian market, stakeholders must also acknowledge the evolving risks as global markets are interconnected, and Nigeria is not insulated from economic volatility, cybersecurity threats, and financial crimes such as fraud and market manipulation.

“We as a unified capital market join IOSCO in our commitment to fostering collaboration across borders to ensure that regulatory frameworks keep pace with these developments. You might note that so far, we have demonstrated leadership by implementing progressive regulations to protect investors and ensure market integrity.

“As we embark on this World Investor Week, let us remember that the responsibility for a strong and inclusive market lies with all of us—regulators, market participants, and investors alike. We firmly believe in the power of collective action. The Securities and Exchange Commission of Nigeria shall continue to work with all exchanges and stakeholders in the Nigerian Capital Market to ensure that we uphold the highest standards of transparency, fairness, and investor protection” he added.

In his remarks Governor Babajide Olusola Sanwo-Olu said Lagos, as the commercial hub of Nigeria, stands at the intersection of innovation, technology, and finance as the state has always embraced forward-thinking solutions to foster economic growth, drive financial inclusion, and create wealth.

Represented by the Deputy Chief of Staff Governor’s Office, Mr. Sam Egube, Sanwo-Olu said the emergence of digital assets and the increasing role of technology in finance present both unprecedented opportunities and challenges, and it is imperative that we engage thoughtfully and strategically with these developments.

“Cryptocurrencies, blockchain, and digital assets are transforming how we understand value, transaction mechanisms, and investments. While their potential to democratize finance is significant, we must also be mindful of the risks they introduce, particularly in areas of regulation, security, and investor protection. The role of IOSCO in advancing investor education, regulation, and market integrity is therefore crucial as we transition into this new financial era.

“Sustainable finance is another key pillar of this event’s theme, and rightly so. As we seek to address global challenges such as climate change, inequality, and economic instability, it is clear that finance must be a force for good. Investments in green technologies, renewable energy, and socially responsible businesses are not only the right thing to do, but they are also sound business strategies for long-term value creation.

Sanwo-Olu said in Lagos, the government is committed to fostering an environment that supports sustainable development, encourages responsible investments, and promotes the well-being of both current and future generations.

“As we embark on this important week of discussions and learning, I encourage us to keep in mind the dual goals of fostering innovation and ensuring investor protection. Technology is moving fast, but we must ensure that no one is left behind. Through events like this, we can build a resilient, inclusive, and sustainable financial system that benefits everyone” he stated.

BY AKUDORO GLORIA

Nigeria’s total capital importation in Q2 2024 has witnessed a swift increase of US$2,604.50 million, higher than US$1,030.21 million recorded in Q2 2023, indicating an increase of 152.81 per cent.

The National Buruea of Statistics (NBS) disclosed this in its second quarter (Q2) 2024 of Nigeria Capital Importation report released on Tuesday on its official website.

In comparison to the preceding quarter, capital importation declined by 22.85 per cent from US$3,376.01 million in Q1 2024.

The report also showed that Portfolio Investment ranked top with US$1,404.70 million, accounting for 53.93 per cent, followed by Other investment with US$1,169.97 million, accounting for 44.92 per cent, whilst Foreign Direct Investment recorded the least with US$29.83 million representing 1.15 per cent of total capital importation in Q2 2024.

The Banking sector recorded the highest inflow with US$1,123.95 million, representing 43.15 per cent of total capital imported in Q2 2024, followed by the Production/Manufacturing sector, valued at US$624.71 million, accounting for 23.99 per cent, and Trading sector with US$569.22 million, accounting for 21.86 per cent .

According to the report, Capital Importation during the reference period originated largely from the United Kingdom with US$1,120.15 million, showing 43.01 per cent of the total capital imported, followed by the Netherlands with US$577.82 million showing 22.19 per cent and the Republic of South Africa with US$255.98 million showing 9.83 per cent.

It further indicated that out of the three states that recorded capital importation during the quarter, Lagos state remained the top destination with US$1,367.84 million, accounting for 52.52 per cent of the total capital imported. Abuja (FCT) followed with US$1,236.64 million showing 47.48 per cent, and Ekiti state with US$0.0003 million.

On Nigeria’s commercial banks, Citibank Nigeria Limited was said to have received the highest capital importation into Nigeria in Q2 2024 with US$818.46 million corresponding to 31.43 per cent, followed by Standard Chartered Bank Nigeria Limited with US$654.79 million representing 25.14 per cent and Rand Merchant Bank Plc with US$488.59, representing 18.76 per cent.

The 650,000 barrels per day Dangote refinery in Lagos, Nigeria, has disregarded the demand from oil marketers to immediately discontinue selling its Premium Motor Spirit (petrol).

This was exclusively revealed in two interviews by the presidents of the Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, and the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi.

This coincides with a report on Monday stating that the Nigerian National Petroleum Company Limited has resigned from its position as Dangote Petrol’s exclusive off-taker.

Nigerians and oil traders are left in limbo by the situation.

Regarding the development, Maigandi stated that IPMAN’s attempts to meet with the management of Dangote Refinery had been unsuccessful.

“We haven’t had a meeting or received input from Dangote Refinery regarding direct sales of its fuel until today, Monday.

“Since we are unable to purchase Dangote Petrol directly, we are unable to discuss its price,” he stated.

He mentioned that if Dangote Refinery consents to sell the product directly to oil marketers, the price of gasoline—which now ranges from N950 to N1,200 per liter—will be lowered.

“If Dangote refineries sell gasoline to us directly, there will be a slight price reduction,” he continued.

When questioned, NNPCL stated that depending on the area, it sells gasoline to its marketers for between N840 and N870 per liter. We retail in Abuja for N950.

Regarding NNPCL’s departure from its position as the exclusive off-taker of Dangote Petroleum, Maigandi emphasized that, “We’re waiting to hear from Dangote Refinery,” regarding our ability to lift petroleum directly.

Gillis-Harry reiterated Maigandi’s stance regarding Dangote Refinery’s reluctance to sell its gasoline to marketers directly.

He claims that even though petroleum marketers have made an effort to speak with Dangote Refinery about business, they have not been given the go-ahead.

“As of right now, we haven’t received approval from Dangote Refinery to proceed with our business discussion regarding direct gasoline lifting,” he stated.

When asked about the situation by a writer, Anthony Chiejina, the spokesperson for the Dangote Group, responded, “I am not aware.”

The Dangote Refinery stated on September 15 that it would begin distributing its gasoline, with NNPCL serving as the only customer.

Dangote Petrol announced a new gasoline price increase of between N950 and N1,100 per litre across all of its retail outlets last month.

The fuel price modifications came on the back of NNPCL’s stance that it bought Dangote petrol at N898 per liter, however, Dangote disagreed.

The oil company, which is owned by Aliko Dangote, the richest man in Africa, had made hints that the Presidential Implementation Committee on Naira-for-Crude Sales will announce the gasoline price at the pump.

Nevertheless, even after the Nigerian government launched the Naira-for-crude program with an anticipated supply of 24 million barrels by October and November of 2024, the cost of Dangote Petrol has remained a subject of controversy.

The House of Representatives pushed Dangote Refinery to permit oil traders to directly lift its gasoline last month.

Refiners and marketers had previously intimated that the start of the Naira-for-crude sales agreement with Dangote Refinery and other refineries would result in a decrease in the price of gasoline at the pump.