Ugo Aliogo and Shalom Uzochukwu
The Director-General, Securities and Exchange Commission (SEC), Mallam Lamido Yuguda, has charged Credit Rating Agencies (CRAs) operating in Nigeria to focus on Investors’ protection in all their dealings, services, and activities within the Capital Market.
This was contained in the goodwill message delivered on behalf of the Director-General of the Commission, by its Head of Monitoring Department, Mr. Adamu Sambo, at the Inaugural Edition of DataPro’s annual webinar on credit rating Imperatives for issuers and investors recently.
In his welcome address, the Chief Executive Officer of DataPro, Mr. Abimbola Adeseyoju, called for greater socialisation of the crucial role played by Credit Rating agencies in the efficient allocation of capital and resources within the economy.
He also stated that DataPro would henceforth be charting a new course in the credit rating industry in the country.
He hinted that the organization would focus on the way forward as well as on how investors and issuers alike can adapt to the new normal, “and drive economic growth and development through the various securities, products, and services available in the Nigerian debt market.”
The keynote address of the Chief Executive Officer of FMDQ Group, Mr. Bola Onadele Koko, which was delivered by the Managing Director of FMDQ Securities Exchange Limited, Ms. Tumi Sekoni titled: “Galvanising the Capacity of the Nigerian Debt Capital Market,” revealed that the COVID-19 pandemic negatively affected the new wave of globalisation with a massive decline in World Trade, Foreign Direct Investment (FDI) and net travel leading to a 3% traction on Global GDP in 2020.
Continuing, the FMDQ boss charged stakeholders to be motivated by the progress made in the debt capital market value chain and jointly seek ways to improve the liquidity and diversity of the Nigerian Capital market.
While speaking on the possibility of SME’s getting an Investment Rating Grade, the Chief Rating Officer of DataPro, Mr. Oladele Adeoye, stated that although size is important, other parameters such as Diversity of Earnings, Earning profiles, Cashflow and Corporate Governance are major considerations to focus on by the entities.
