University Of Benin Holds 196th Inaugural Lecture Series titled “NIGERIAN SECURITIES MARKET: THE TWISTS AND THE TURNS TOWARDS ENGENDERING GROWTH”

PROF. (MRS.) Patience Amechi Isenmila delivering the 196th  inaugural lecture series of the University Of Benin

 

The 196th  inaugural lecture series of the University Of Benin  held at the Akin Deko Auditorium Ugbowo Campus on 2nd NOV, 2017  witness the unprecedented attendance had the Topic: “NIGERIAN SECURITIES MARKET: THE TWISTS AND THE TURNS TOWARDS ENGENDERING GROWTH” by PROF. (MRS.) Patience Amechi Isenmila

Present at the event are the vice chancellor of the university , ably represented by DVC Academic prof, Iribhogbe, DVC administration Prof. Ehirobo, the school Liberian represented by Dr Luke Obasuyi , Deans, Directors, professor ,Emeritus Professors and top government functionaries  families and friends,staffs and student of the great university which is the 49th to be delivered in his tenure

This is the third to be delivered in the Department of Accounting since its inception and the first inaugural lecture to be presented by a female professor from the Department of Accounting and by extension, Faculty of Management Sciences.

The modern economy is essentially built around the exchange of goods and services by different actors in the economy.

These actors range from the ubiquitous one man business to giant conglomerates all serving the varying needs of various consumers.

Where this exchange of goods and services is smooth, there is a correspondingly high standard of living facilitated by the market mechanism.

The market mechanism is therefore admittedly an exchange mechanism (Isenmila, 2004). It comprises the commodity and financial markets.

The financial market serves as a network of markets for the issue and purchase of new financial assets and the trading of existing financial assets.

The financial market plays an important role in financial intermediation in any economy, whether developed or developing.Thus, the market is a link between deficit units and surplus units.

The market provides a meeting point for investors and borrowers on one hand and savers and lenders on the other.

For us to understand this lecture on securities market, it is important that we first of all look at the concepts of financial system and the Nigerian financial  

Definition of Financial System: The financial system of any country refers to a set of institutional and other arrangements that transfer savings through the economy from the surplus to the deficit units.

Components of a Financial System: The financial system is made up of financial intermediaries, financial markets, financial instruments, rules, conventions and norms which facilitate and regulate the flow of funds through the economy.

 Financial markets include: money market, capital market and foreign exchange market.

 Capital market consists of market for negotiated capital fund and long-term securities market

Thus, the securities market we are talking about today is an aspect of capital market. The securities market also has two components: Primary and Secondary securities markets.  Primary securities market is for the issue and purchase of new financial assets while Secondary securities market is for trading of existing financial assets.

Security: she said  security is a financial instrument representing ownership (stocks or shares), a debt agreement or the right of ownership (derivative).

There are two basic types of securities that are traded in the securities market namely;

Fixed income securities and

Variable income securities

Good Governance: It is a system by which business corporations are directed and controlled.

A study carried out by Isenmila & Dabor (2002) to determine the effect of corporate governance practices on firm performance revealed that good corporate governance when followed strictly affects firm performance positively.

In another study on corporate governance and earnings management in Nigeria (Isenmila & Dabor, 2008) it was discovered that where there is a high proportion of outside directors on the board, it mitigates the occurrence of earnings management.

There is an urgent need for the regulators to intensify their supervisory role in the market.

 There is need for more government initiatives and strict penalties for sharp     practices in the market.

The illiquidity and shallowness of the market need to be addressed and improved on.

There is an urgent need for the regulators to intensify their supervisory role in the market.

There is need for more government initiatives and strict penalties for sharp practices in the market.

The illiquidity and shallowness of the market need to be addressed and improved on.

There is also a need for more products to be introduced into the Nigerian securities market.

It is very important that the market be demutualized. This will lead to improved efficiency and effectiveness of the market.

In conclusion with this lecture Twists and turns have not ended.  The CBN and the FG recently instituted foreign exchange policies that seem to be yielding positive results.

According to Naira metrics, the Nigerian stock exchange was the best performing among the top 16 global stock exchanges in the month of June, 2017

In July 2017, seventeen listed firms were suspended from trading and their shares temporarily kept on hold.

The sanctions imposed on these companies were as a result of their noncompliance with the regulatory provisions.

Though the Nigerian economy faced many challenges; political instability, global meltdown, fall in crude oil prices, insecurities, the Nigerian securities market definitely has high prospects and a bright future considering recent pronouncements by the regulatory bodies of the market.

It is hoped that all these policy measures including the proposed demutualization of the Nigerian securities market, will enhance the growth and stability of the market. 

The vice chancellor  represented by DVC (Acedemic)  prof.  E.P Iribhogbe appreciated the lecturer for the research work and a well delivered lecture. He thereafter decorated Prof (Mrs) Patience Amechi Isenmila with a medal to usher her into the honor roll of the University of Benin Inaugural Lecturer’s

View colorful pictures captured at the event:

 

 

 


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