SENATE CAPITAL MARKET COMMITTEE CHAIRMAN, GANIYU SOLOMON, CARPETS SEC, NSE AND CBN FOR LACK OF COORDINATION

very serious

Senator Solomon: very serious

Chairman of the Senate Committee on Capital Market, Senator Ganiyu Solomon has no soothing description for the nation’s capital and money markets regulatory authorities. In an interview monitored on AIT, Senator Solomon said the Securities and Exchange Commission have been at cross purpose with each directing and dispensing policies that are parallel to each other.

 

Senator Solomon said despite the easy excuse provided by the global financial market meltdown, it was obvious the Nigerian market was headed for trouble with the independent manners the regulatory authorities were conducting their supervisory roles in the markets.

“It is obvious that they are not coordinated” Senator Solomon said. “The three regulatory bodies are expected to consult with one another and agree on common ground before they make pronouncements on policy direction for the capital market and other related activities. But what you see is CBN saying one thing today and the SEC saying another tomorrow while the NSE takes another position the other day. It confuses investors and market operators.”

The Chairman of the Senate Committee on Capital Market also questioned the surveillance capacity of the regulatory authorities:

“It is apparent that the surveillance capacity of the regulatory authorities is limited. It takes time before they react to issues and when they do, they react haphazardly.”

In response to the question of his personal opinion of the assurances of the insulation of the Nigerian financial and capital market to the global financial market crisis given by the Minister of Finance, the CBN Governor and the Minister for National Planning on the floor of the Senate, Senator Solomon said what the officials were trying to do was to merely calm the nerves and anxiety of Nigerians:

“What they are trying to do is just to allay fears” Senator Solomon said. “We all know that the world has shrunk to a global village so what affect a part of the world reflects in other parts of the world. You can see that oil prices have come down which is a fallout of the global crises this will definitely impact our economy. And again, we domicile our foreign reserve in dollar, this mean that if the value of the dollar falls it will affect the value of our foreign reserve. So there is no way we can be insulated from the global crisis.” Senator Solomon explained.

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