LAGOS, (Sundiata Post) – Financial stakeholders called for effective regulatory framework in driving Nigeria’s early recovery from economic recession.
They made this called at the Independent Shareholders Association of Nigeria (ISAN) triennial delegates conference held in Lagos over the weekend.
Speaking the former chairman of Union Bank, Mr Kalu Kalu, who was also the chairman of the occasion said that regulators of the capital market should avoid statements that can create panic in the market.
He called on Securities and Exchange Commission (SEC) to pay more attention to local industry in ensuring their growth.
Also, the executive of director, Stakeholder Management & Corporate Communication of Dangote Group, Mr. Mansur Ahmed pointed out that regulators are designed to help sector of the economy they regulate grow.
He said that “They may participate in revenue collection but their principal role is to nurse the industry to grow. Now that we are in recession, this is the more reason that regulators should be more collaborated with the industry.”
He stated that sanction should only be imposed when it absolutely necessary, saying, “When companies are faced by economic downturn sometimes they are not able to comply immediately to regulations and rules, we should look at the reason why they are not complying, are the non-compliance situation prompted by circumstances beyond them. When this happen, a lesser sanction should be applied.”
The former GMD of Ecobank Transnational Incorporated (ETI), Mr Arnold Ekpe also said that policies should be channeled towards growth, saying that fines should be done in a way that sends the right signals to investors.
While the association came up with a new management as the outgoing president, Mr. Sunny Nwusu Nwosu, said he will support his successor.
Nwosu, who founded and established the ISAN, the shareholder advocacy group, said the shareholders’ association is making history as the first in Nigeria to have relinquished power from the founder to another person.
Recently, there was a disagreement between the Nigeria Employers’ Consultative Association (NECA) and SEC as NECA has cried out against the sanctioning of some quoted companies by SEC for failing to file their fourth quarter unaudited results.