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SEC May Shelve Nationwide Dematerialisation Awareness Campaigns – Official

Mr Emeka Madubuike, the Chairman, Securities and Exchange (SEC) Committee on Dematerialisation, says the commission may shelve the nationwide dematerialisation awareness campaigns scheduled to start on Jan. 31.

Madubuike told the News Agency of Nigeria (NAN) in Lagos on Thursday that the postponement was due to the zero allocation to SEC in 2013 federal budget by the National Assembly.

Dematerialisation is the process of replacing paper share certificates with electronic records at the Central Securities Clearing System.

 He said that the campaign would not be feasible because SEC needed funds to carry out the elaborate campaigns.

Madubuike, who is also the President Association of Stockbroking Houses of Nigeria (ASHON), said that the zero allocation would affect other initiatives to revamp the capital market in 2013.

According to him, SEC cannot approve the committee’s report for the Jan. 31, 2013 date because of the House of the Representatives’ stance that the commission’s director-general must be removed.

Madubuike, however, called for quick resolution of the impasse by the Presidency in the interest of the capital market and the total economy.

NAN recalled that the House of Representatives directed the withholding of SEC’s allocation in the 2013 Appropriation Bill it passed on Dec.20.

This followed the lower legislative chamber’s decision not to have anything to do with SEC until Ms Arunma Oteh is removed as the director-general.

 The commission had proposed to spend about N93 million to execute the dematerialisation policy. Oteh had said at the 2nd Annual Capital Market Committee Retreat in Warri, Delta, in December, that some shareholders were resisting dematerialisation policy due to lack of knowledge of its benefits.

Oteh reiterated that asset transfer from one investor to the other would be much easier in a dematerialised market.

The director-general said that road shows and enlightenment campaign were imperative to sensitise Nigerians on its benefits to avoid resistance.

 

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Ex-ANAN Boss Urges FG To Make Poilcies That Will Reduce Inflation

A former President of the Association of National Accountants of Nigeria (ANAN), Mr Samuel Nzekwe, wants the Federal Government to make policies that will reduce the inflation rate in 2013.

Nzekwe told the News Agency of Nigeria (NAN) on Sunday in Lagos that the government needed to take aggressive measures that would address the increase in the nation’s inflation rate.

 ‘’Inflation undermines purchasing power and once the purchasing power is weak, it will affect the people’s standard of living,’’ he said.

Nzekwe said that the high rate of inflation had increased the level of poverty and devalued the nation’s currency.

NAN recalls that the inflation rate increased from 11.7 per cent in October to 12.3 per cent in November.

NAN also reports that the Monetary Policy Committee (MPC) has retained the Monetary Policy Rate (MPR) at 12 per cent seven times in 2012.

The MPR is the rate at which the apex bank lends to commercial banks.

Nzekwe urged the government to make deliberate effort to stimulate the real sector to produce more goods and services for local consumption and export, in order to shore up the nation’s revenue.

 “Once more goods and services are produced, the inflation rate will automatically come down,” he said.

Nzekwe advised the government to make consistent policies that would impact positively on various sectors of the economy.

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