Wednesday, January 22, 2020 / 09.00PM / SEC Nigeria / Header Image Credit: WebTV
The Securities and Exchange Commission (SEC) has said that it has stepped up efforts to encourage retail investors to invest in the capital market in a bid to Create wealth, deepen the market and grow the nation's economy.
Acting Director-General of the SEC, Ms. Mary Uduk who spoke to journalists in Lagos on the sidelines of the recently held Thisday Awards 2020, urged investors to look into the capital market for future investments as various products abound that would suit their needs.
According to her, "You don't need to have so much money to be able to tap into the opportunities available in the capital market. For instance, with the government bond, the minimum investable amount is N10,000, and you can buy in subsequent amounts of N1,000."
"We have Collective Investments Schemes (CIS), we have the stocks that you can buy through the stockbrokers and those you can invest in with as little as N5,000. So you don't necessarily have to have a lot of money to invest, all you need is to approach the stockbrokers. They can open an account for you, and whatever you have, you can pay into the account and give instructions on what kind of investments you want to make."
Uduk said it is important for people to understand the workings of the capital market and not have the misconception that they must have a lot of money before they can invest.
"We have to disabuse our minds of it. I think that is what is leading people into Ponzi schemes where they lose money. So all you need to do is to go to SEC website, see the list of capital market operators and approach one of them to open an account," she said.
The Acting DG assured investors that the SEC would continue to play its role of providing a decent and responsible playground for investors to ensure that they get the benefits of their investments.
"The SEC is very interested in investor protection, and that is why we have rules that the players must obey, and all these are in place to ensure that our market is safe for investors."
"The smaller the investors the more he/she is protected. We don't want any investor to go into the market and lose money, which will not be good for our market."
Uduk said the SEC has continued to educate and enlighten Nigerians about the investment opportunities available in the market and urged potential investors to engage professionals who will guide them on relevant investible products.
"In the past, people go to stockbrokers to buy stocks without having proper knowledge of what to buy but now we are encouraging people to go through the investment schemes. If you don't know anything about stocks, go through the CIS and invests in different stocks so that professionals can manage your investments. If I am a welder for instance and I don't know anything about investments, I can put my money there and professionals will manage it for me," she added.