Babalola To Inaugurate Committee To Design Code of Governance For Capital Market Regulators

ABUJA, May 25, (THEWILL) - Minister of State for Finance, Mr. Remi Babalola, will on Thursday inaugurate a Committee to design code of corporate governance for capital market operators as part of renewed efforts by the Federal Government to ensure transparency, ethics and effectiveness in the capital market.

Babalola will also inaugurate another Committee to review the Investments and Securities Act of 2007 same day.

The inauguration of the two committees will hold simultaneously at the Conference Room of the Office of the Minister of State for Finance at 10am, according to the statement made available to THEWILL and signed by the Minister's Special Assistant on Communications, Yinka Akintunde.

Babalola disclosed that the design of code of governance for capital market operators would help to improve the operations of the regulators.

"Part of the factors that led to the recent capital market collapse was weak and ineffective supervision on the part of regulators," the minister stated, while also noting that "the ISA Review Committee seeks to align the Act with current realities and international best practices."

It will be recalled that the Minister of State for Finance had on April 8, 2010 set a six-month work programme for all the heads of parastatals under his supervision to enable realize their mandates and also transform the economy.

The parastatals include: the Nigeria Deposit Insurance Corporation, National Insurance Commission, Securities and Exchange Commission, Nigerian Export Import Bank, and the Investments and Securities Tribunal.

He stated that the parastatals’ performance would be measured on a monthly basis, and the heads of parastatals would be held accountable for accomplishment.

"Non-performance and abuse of office would not be tolerated. Henceforth, performance would be measured on a monthly basis and this would be determined against the mandates of each parastatals.

"We require a complete transformation of parastatals in order to accomplish tangible results that would be seen and felt by the people. In accomplishing these tangible results, I wish to re-emphasize that due process must be followed and the results backed with facts and figures," he said.

The 10-man Committee to design code of governance for capital market operators such as Securities and Exchange Commission (SEC) and the Investments and Securities Tribunal (IST) will be chaired by Mr. Fola Adeola, former Chairman of National Pension Commission (PenCom).

The Committee includes: Chief Executive Officer of First Capital, Mr. Osaze Osifo (Vice-Chairman of the Committee); Director of Homes Finance in the Federal Ministry of Finance, Alhaji Gidado Mohammed (Secretary of the Committee); Director of Legal in the Finance Ministry, Mrs. O.O. Moore ; SEC Commissioner (Compliance and Enforcement), Mr. Charles Udora; and a Partner in Aelex, Mr. Fubara Anga.

Others are: a representative of the Office of the Hon. Minister of Finance; a representative of the Office of the Hon. Minister of State for Finance, Mr. Olaide Agboola; a representative of IST, Hon. H.M. Rabiu; a Director in Assets and Resource management (ARM), Alhaji Sadiq Mohammed.

The Managing Partner of Olaniwun Ajayi & Co, Dr. Konyinsola Ajayi (SAN), a lawyer and an expert in capital market, has been appointed as the chairman of the committee to review the ISA 2007, which is made up of 17 members.

Included in this committee are: Mr. Asue Ighodalo of Banwo & Ighodalo Solicitors (Vice-Chairman of the Committee); Director of Legal in the Finance Ministry, Mrs. O.O. Moore; SEC Commissioner (Operators), Ms. Daisy Ekineh; General Manager, Nigerian Stock Exchange, Mr. Farooq Oreagba; Director of Homes Finance in the Federal Ministry of Finance, Alhaji Gidado Mohammed (Secretary of the Committee); and a Senior Advocate of Nigeria, Dr. Babatunde Ajibade.

The ISA 2007 Review Committee also has as members a representative of the Office of the Hon. Minister of Finance; a representative of the Office of the Hon. Minister of State for Finance, Mr. Bode Agunbiade; a representative of IST, Hon. A. Okusanya; Managing Director of MaxiFund, Nr. Okechukwu Unegbu; Managing Director of Tiddo Securities, Alhaji Yusuf Moddibo; Deputy Managing Director of FDHL, Mr. Malcolm Gilroy; Group Executive Director of BGL, Mr. Chibundu Edozie; Alhaji Alhassan Gwarzo of Sterling Capital; and representatives of Association of Issuing Houses of Nigeria and Association of Stockbroking Houses of Nigeria.