SEC enjoins entertainment industry to utilise Capital Market funding

The Securities and Exchange Commission (SEC) has enjoined the entertainment and creative industry to utilise the various level of funding available in the Nigerian Capital Market.

The Director General (DG) of SEC, Arunma Oteh, disclosed this at the 18th Annual Stockbrokers’ Conference held in Lagos at the weekend.

“It is a very good vehicle to raise funding in an innovative way. One other thing that has been a critical challenge for the entertainment industry is the absence of adequate financing on a timely basis,” she stated.

“I think for us at the capital market, one of the things we have recognised is that, this is an industry that has great potentials and is been recognised anywhere in the world,” she continued.

The DG noted that their counterparts outside Nigeria are also getting funding from the capital market, citing the Iroko TV as an example, which got from a private equity firm called Tiger in New York.

Oteh also said there were a lot of possibilities and variety of instruments on the Nigerian Capital market, ranging from equity to debt which they could choose from in relation to their risk appetite.

In her words: “There are possibilities for us with the new listing requirement; with the revamp of the Alternative Securities Market (ASeM) by the NSE. I think what we are seeing is real opportunity for us to do much more.

“I think it is an opportunity to see how well people perceive risk and how it can be mitigated or eliminated. You can have different forms of finance at different levels from equity to debt so that the different parties can take the risk that they are comfortable with,” she continued.

The SEC boss also cited the option of crowd funding, “where people via the internet or as a group can basically fund what they are interested in.”

She added that those looking to invest have the opportunity to see different vehicles of which they can invest.

On his part, the President of the Chartered Institute of Stockbrokers (CIS), Albert Okumagba, said the focus of the conference on the entertainment industry was necessitated by the contribution of the industry to the Gross Domestic Product (GDP) of the country.

He said: “Ranked third globally, in terms of quality of production and gross earnings, after Bollywood and Hollywood, it has been said that Nollywood employs more Nigerians than the government.”

Source : Tribune

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