How 2020 budget, Finance Act can grow capital market – Experts
Stakeholders in the Nigeria capital market were in Lagos, the nation’s largest city, on Thursday to discuss how they could leverage the 2020 budget and the Finance Act for the growth of the Nigerian capital market.
The budget seminar, themed “Leveraging the 2020 Budget and The Finance Act for the Growth of the Nigerian Capital Market”, is the fourth in its series organised by the Securities and Exchange Commission (SEC).
The SEC regulates the capital market and has a mandate to protect investors in the market.
Discussants included a group of market practitioners, academia, and policymakers who analysed this year’s budget and the Finance Act with the aim of increasing stakeholders’ knowledge and contributions, while identifying areas of benefit.
Over the years, the SEC Budget Seminar Series has served as a forum for evaluating the connection between the Nigerian capital market and the annual Federal Government budget, with the aim of identifying how the capital market can contribute to, and benefit from, the budget and its implementation.
President Muhammadu Buhari presented the 2020 budget to the National Assembly on October 8, 2019 which was eventually signed on December 17, 2019, with an approved budget of N10.6 trillion.
Budgets play important roles in an economy, and by extension in the capital market. This importance is actually the basis on which the market stakeholders came together for the seminar and analysed the risks and opportunities presented by the government budget.
“The last 12 months has been a challenging and difficult period for our economy, the markets and by extension the SEC,” said Mary Uduk, acting director-general, SEC.
“Despite revenue challenges and competing demands, SEC successfully implemented key programmes and projects, achieving milestones. The SEC is poised to build on the gains of 2019 with renewed focus on resource optimisation and execution of prioritised initiatives in the coming year,” she said.
Discussants also looked at critical aspects of the new Finance Act that affect the capital market. These include the provisions on Securities Lending, Real Estate Investment Schemes, minimum tax, increased Value Added Tax, amongst others. •Continuesonlineat www.businessday.ng