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The Senate Committee on Capital Markets has requested the federal government to include N10 billion in the 2025 budget to finance literacy development in the capital markets.
It said this is part of the measures to ensure financial literacy and restore investors’ confidence.
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Chairperson of the Committee, Osita Izunaso, made the request on Tuesday when the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, appeared before it to discuss the performance of the Securities and Exchange Commission (SEC).
Mr Izunaso, who represents Imo West Senatorial District, emphasised increased awareness about capital markets to curb fraudulent investments and Ponzi schemes that have cost Nigerians billions of naira.
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“Honourable Minister, I just confirmed with my colleagues, the chairman of the finance and other members of the committee, and then we are of the opinion that the Honourable Minister of Finance should approve N10 billion intervention for capital allocation special funding to finance literacy development in the capital markets because that is where the problem is.
“I just confirmed with him now and another colleague, and they said we should request you to approve N10 billion in the 2025 budget for special funding of capital markets literacy development,” he said.
The senator said the committee would formally send a letter to the minister with the request before the end of today.
“So, if you do that, we will be happy and capital markets will blossom. You will get our letter in that regard today after this meeting,” Mr Izunaso added.
The Securities and Exchange Commission (SEC), under the supervision of the Federal Ministry of Finance, oversees capital markets, ensures fair and transparent transactions, and prevents insider trading violations.
Over the years, millions of Nigerians have suffered financial losses due to Ponzi schemes. Six years ago, three million Nigerians lost about N18 million to the then-popular Ponzi scheme, MMM, which later crashed.
Ponzi schemes operate by using funds from new investors to pay earlier investors, similar to a pyramid scheme. Both rely on the continuous recruitment of new participants to sustain payouts.
In 2021, Lamido Yuguda, director general of SEC, revealed that three million Nigerians lost N18 billion to Ponzi scheme operators.
Mr Izunaso, while explaining the necessity of the intervention fund, said lack of knowledge has led to widespread financial losses suffered by Nigerians.
“That is the hallmark of what Senator Victor Umeh said. Most of them lost their money through this capital market system. People have lost money and have not regained confidence, so we are pushing them.
“We didn’t talk about unclaimed dividends, and they didn’t know that the unclaimed dividend is almost four per cent remaining,” he said.
Supporting the demand, Niger East senator Sani Musa, urged the finance minister to ensure that the N10 billion is allocated in the 2025 budget.
Mr Musa, who chairs the Senate Committee on Finance, stressed the importance of an extensive orientation programme on capital markets to restore investors’ confidence.
Mr Edun did not immediately respond to the lawmakers’ demand. Instead, the committee asked him to expect an official request in a letter.
The senators, thereafter, processed into a closed-door session with the management of the SEC.
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