The African Development Bank (AfDB) Group and the Securities and Exchange Commission (SEC) have announced the signing of a $460,000 agreement to support the acquisition, installation and deployment of an automated surveillance system to protect the capital market.
This was disclosed in a statement by Mr Lamin Barrow, the Director-General, Nigeria Country Department of the AfDB Group adding that that the surveillance system will enhance the SEC’s regulatory and supervisory oversight of securities trading in the country and would be implemented in two years at a cost of less than $1 million dollars with over $500,000 to be contributed by the SEC.
He also noted that the grant was from the Capital Markets Development Trust Fund (CMDTF), a multi-donor trust fund administered by the AfDB and supported by the Ministry of Finance of Luxembourg and Ministry of Foreign Trade and Cooperation of the Netherlands.
In the same vein, Mr Lamido Yuguda, the Director-General of the SEC, said a market surveillance system was required to aid SEC in detecting and addressing market abuses as quickly and efficiently as possible to prevent infractions.
He added that an automated market surveillance tool would enhance the Commission’s role in investor protection and ensure a transparent, fair and orderly market to reduce systemic risks.