Nigeria Develops Plans for Foreign Stock Trading
SEC Nigeria wants to ensure that foreign stock trading in Nigeria is orderly done: "“There is an increasing interest among the younger population and this is of concern to the commission primarily because it creates an avenue for exploitation.”
In an interview monitored by Nairametrics, the executive commissioner for operations of the SEC, Dayo Obisan revealed the commission was planning to actively monitor the local facilitators of foreign stocks.
“At least 400,000 Nigerians have invested in foreign stocks through brokers in the past 18 months,” Obisan said, with Nigerians actively trading or holding foreign equities now exceeding those investing in the local market and about 70% of these participants being less than 40 years of age.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The SEC intends to license firms offering foreign stocks under a “digital sub-broker” regulation, which Obisan says should provide a form of clarity to their activities.
He also stated the requirement will ensure “regulatory responsibilities in on-boarding clients, custody of assets, and compliance with reporting requirements are met”
When SEC came hard, I wrote to the leadership of Bamboo, I said they should be aware that it is insanity of any nation to allow money to leave it shores. It must be duly noted that whilst America and many leading economy rose, they were aggressive on protectionism. If all the money in the Nation is used to build an external firm, hence improving the livelihood of that nation, how do we grow?
We must remember that nations doesn't rise solely on the wings of cash, which this external traders have intention for - buy, wait for the stock to rise, sell, and cash out- rather, nations rise when there is active export of value (which we have in abundance, but I must add we are losing grounds on, because moving forward the world would no longer fancy minerals rather intellects) , and for there to be a valuable export, the nation must deepen capabilities, looking at factors that drive up productivity like good infrastructure, stable political clime fostered by good governance structure, access to resource (human, and physical), and develop. Thereafter, innovation, efficiency, and GLOCALIZATION must be rooted in the thought pattern in regards to work.
If you notice, I wrote glocalisation, rather than globalization, this is no mistake in the context of Africa. The COVID-19 pandemic taught us that global supply chain is fragile and the only way to escape being at the mercy of others, feasting joyously at remnant, is to build here first continental, then globally. Recently, European Union made bold ambitious calls to become a more active player in the semi-conductor sector, this is not a United Kingdom, or France, Poland agenda, rather a continental thing although with a global intention, since as of current it only follows even though it produces.
Thus, AfCFTA remains one of Africa leverage to growth, hence it is needed for us to route out pattern that put us ahead whist we try to secure a good future.
Nevertheless, am I saying Nigerian should not try to secure a good return on their hard-earned money, No, rather, if the Government is willing to show muscles by enforcing strict regulation then they should be more than willing to provide the enabling systems that make indigene show patriotism through their investment in the firm operating at home. Last week, a meme surfaced on Twitter, conveying the message that a fellow made a sum of money in dollar, converted to it naira for investment in Nigeria via fixed deposit only to convert it back and having his money highly devalued because of the extreme dip in the value of the nation's currency, pathetic!
Good Morning.