SEC, fund managers work on e-transfer to boost financial inclusion

The President of Fund Managers Association of Nigeria (FMAN), Dr. Ore Sofekun has said that the association was working with the Securities and Exchange Commission (SEC) on electronic transfer of funds so as to boost financial inclusion.

Speaking at the annual workshop of Capital Market Correspondents Association (CAMCAN) of Nigeria held in Badagry, Lagos at the weekend, Sofekun noted that electronic transfer of funds will ensure confidence building between investors and fund managers and encourage more savings.

Sofekun, who spoke on the topic, “Deepening Retail Investors’ Participation in the Capital Market, said increase saving will accelerate economic growth.

According to her, “If we really want to develop our country, we have to save for long term.”

Sofekun, who is also the Managing Director of Investment One Venture Capital, said that in 2008 number of domestic investors who invested in the money market funds was higher than foreign investors, disclosing that the foreign investors took over and when the economy was down, they went away with their dollars.

“In United Kingdom, average investors save their money for six to seven years as a day a child is born, parents begin to save for his university education as both primary and secondary schools education is free,” she said.

Also speaking, the  Vice President, Strategy and Corporate Services, FMDQ OTC Securities Exchange, Ms.Kaodi Ugoji, said people are not taking advantage of opportunities in the capital market as two per cent of retail investors participate in the capital market compared to 43 per cent in United State or 19 per cent in South Africa.

She noted that listing of State Government bonds in the OTC market will forestall default as people will have opportunity to take position in bonds.

She said that key documents of companies listed in the FMDQ market are posted in the website for investors to take good decision.

In his presentation, the National Coordinator-elect of Independent Shareholders Association of Nigeria (ISAN), Mr. Adeniyi Adebisi, who noted that market capitalization of equities on the Nigerian Stock Exchange has shrunk from N14 trillion to N8.6 trillion, said government needs to ensure return of confidence in the capital market.

He said:  “Confidence of the investors, especially, retail shareholders, have been jolted and severely shaken. It will require a great deal of efforts on the part of government at the highest level of authority to bring back the confidence.

“Essentially, investment is saving and not gambling. From this perspective, many investors who had their fingers badly burnt might have acted from not too altruistic motives.”

Adebisi suggested that massive education of the investors should be embarked upon by all the stakeholders in the capital market, adding that “Some inducements may be worked out as well.”