Yemisi Izuora
The Director General (DG) of the Securities and Exchange Commission (SEC) Dr. Emomotimi Agama, has offered a detailed financial management framework for graduating Cadets of the Nigerian Defence Academy (NDA).
While speaking to them, the DG, advised them to explore the various investment opportunities available in the capital market to create wealth.
Agama stated this at the 23rd Convocation Lecture in honour of graduating cadets of 72 Regular Course and Post graduate students held in Kaduna, Wednesday.
Agama charged the Cadets to define what they want to achieve financially both short and long term, visualise their ideal future and align their financial strategy accordingly.
He said, “Public servants, traditionally reliant on fixed salaries and pensions, can achieve economic prosperity by strategically engaging with the capital market. Capital markets, comprising stock exchanges, bond markets, and alternative investments, offer opportunities for wealth creation, passive income, and financial security. However, participation requires financial literacy.
Agama said securities also enable issuers to access a larger pool of investors, saying that for instance, without a developed securities market, a person with extra savings might only be able to keep their money in a bank deposit, even if they are willing to take on more risk for a higher return. With the variety of securities available, from equity to fixed-income, investors can choose options that match their preferred risk and return levels.
“Ultimately, the securities market serves as a vehicle to meet the complementary goals of both the issuer and the investor. The issuer defines the terms for raising capital, while the investor gains rights associated with the security, which can include ownership, a role in management, or a claim on assets. The securities market is the platform where these securities are initially issued and then traded among investors.
“Opportunities are available to public servants and other investors when companies, governments, and various classes of issuers issue their securities to raise money from the capital market. For example, companies or governments frequently need funds to execute any task. They can then approach the capital market for funds using any of the securities (instruments) such as equities (ordinary shares), debt instruments (bonds, debentures or preference shares), collective investment schemes, commodities, digital assets and derivatives”. He stated.
The SEC Boss further enjoined the cadets to ensure that they patronise only SEC registered entities to avoid being defrauded of their hard earned money.
In his address, the NDA Commandant Major General A. K Ibrahim said one of the reasons why officer have issues at retirement is poor management of resources during their active service life.
He said “The reason we are having this lecture today is because of the value we place on investment and empowerment issues for the military. One of the reason we have issues after retirement is due to lack of investments and management of the little resources we have.
Major Gen. Ibrahim therefore expressed the hope that with the enlightenment,
officers and men will be in better position to manage their resources and create wealth for their families.