In Abuja Reps to investigate capital market collapse in 2008

Yusuf also said that the measure was aimed at restoring investors’ confidence in the stock market.

  • Published:
Speaker, House of Representatives, Yakubu Dogara play

Speaker, House of Representatives, Yakubu Dogara

(theguardian)
24/7 Live - Subscribe to the Pulse Newsletter!

Rep. Tajudeen Yusuf, Chairman, House of Representatives Committee on Capital Market, on Thursday, said the committee would investigate the collapse of Nigeria’s capital market in 2008 .

Yusuf told newsmen in Abuja that a credible committee would be set up to ensure the implementation of a 10-year master plan to resuscitate the capital market.

He said that the measure was aimed at restoring investors’ confidence in the market.

“What is required is to have the confidence of our investors back," he added.

The lawmaker expressed the committee’s commitment to ensure that there was a special fund to mitigate the effects of any slide in the stock market.

“There is a fund being created to serve as form of shock absorber to investors.

“So if anybody goes to the market now and gets his hand burnt, there is a fund made available to ensure that the person doesn’t lose his entire investment.

“All these came about as a result of having reviewed what happened in 2008 so that we don’t fall into the same pit again.

“It is a fund to cover some aspect of losses just like we have in Nigerian Deposit Insurance Corporation.

“Those that put their money in the banks can have their deposits back even if it is not all.

“So if there is a fund that when you invest in the capital market and you have a challenge that is verifiable, you would be paid some parts of your investment.

“This indicates that you don’t lose the totality of your investment,’’ Yusuf said.

He also assured investors of the committee’s resolve to provide effective oversight on the activities of the regulatory agencies and the operators to ensure strict compliance with extant regulations.

“If you follow the recent financial reports, you would realise that there have been improvements in the capital market," he said

According to him, there is no nation in the world that attains sustainable height of development without a viable capital market.

“No nation depends solely on commodities such as oil and gas and what have you.

“You must take money from the capital market for investment and not a platform where it can be misappropriated. It helps corporate governance and monitoring.

“So, the Nigerian capital market can be said to be under construction and we have master plan implementation committee, a 10-year master plan to restore the integrity of the market.’’ Yusuf urged the Federal Government to avoid initiating policies capable of causing ripples and tension in the system.

ALSO READ: House of Reps orders EFCC to shut down MMM Ponzi scheme

Commenting on the challenges of unclaimed dividends, he explained that the Security and Exchange Commission was working out modalities to ensure that the monies were actually paid back to the companies.

Do you ever witness news or have a story that should be featured on Pulse Nigeria?
Submit your stories, pictures and videos to us now via WhatsApp: +2349055172167, Social Media @pulsenigeria247: #PulseEyewitness & DM or Email: eyewitness@pulse.ng. More information here.