SEC: We’ll intensify efforts on identity management for capital market

The Securities and Exchange Commission (SEC) says the identity management system currently being developed by the capital market will tackle the lingering identification issues. 

Lamido Yuguda, SEC’s director-general, said this recently when he received members of the committee on identity management for the capital market in Abuja.

In a statement, he added that the commission would accelerate scalability in the evolving technology terrain.

Yuguda described identity theft as a fraudulent practise of using another person’s name and personal information to obtain shares, credit, and loans, among others.

The director-general said the commission decided to engage relevant stakeholders in a bid to resolve issues of identity management to tackle the problem of unclaimed dividends.

Hence, he said the commission was currently engaging stakeholders to harmonise various databases of investors and facilitate data accuracy in the market as well as increasing investors’ education to stem the trend.

Yuguda expressed satisfaction with the work of the committee so far, adding that stakeholder engagements would commence in earnest to ensure the success of the project.

He also expressed optimism about the project, saying it would build a greater Nigeria and impact unborn generations.

In his remarks, Aigboje Aig-Imoukhuede, chairman of the committee, commended the commission on the recent release of rules on issuance, offering platforms and custody of digital assets.

He said the committee’s work had exposed the need for standardisation of systems within the Nigerian capital market that would support open finance which the SEC can drive.

He added that the SEC could leverage the committee to develop the framework for the Nigerian capital market.

“The committee had clearly defined the task ahead in a road map and also identified that the project would be carried out in stages supported by a consultant with recourse to the SEC on a regular basis,” he said.

“The committee is committed to ensuring that the customer journey for investors is such that would cause a revolution in the Nigerian capital market, thereby making our market attractive to the tech-savvy and younger generation.” 

The committee on identity management for the capital market was constituted by the SEC on June 30, 2021, in order to resolve issues bordering identity management such as unclaimed dividends and cumbersome customer journeys.

According to the commission, membership was drawn across the capital market, banking, payment system, and technology/innovation enabler .