Roles of Government Agencies in Business Regulations

Vocabulary flashcards related to the roles of government agencies in the regulation and control of businesses in Nigeria.

Corporate Affairs Commission (CAC)

Established following the promulgation of Companies and Allied Matters Decree (CAMD) of 1990 to regulate and supervise the formulation, incorporation, management, and winding-up of companies in Nigeria.

CAC Role in Company Formation

Ensures adherence to the provisions and requirements specified in the Companies and Allied Matters Decree of 1990 for company formation.

CAC Role in Company Management

Supervises the management of incorporated companies by requiring the submission of reports or decisions for registration, including changes in memorandum and articles of association, allotment of shares, and annual financial returns.

Financial Markets

Markets where financial securities are traded, comprising the money market and the capital market.

Money Market

Market where short-term securities with maturities less than one year are exchanged, controlled by the Central Bank of Nigeria (CBN).

Operators in the Money Market

Commercial banks, merchant banks, development banks, and savings banks.

Capital Market

Regulated and controlled by the Securities and Exchange Commission (SEC).

Securities and Exchange Commission (SEC)

Set up in 1979 to regulate and develop the Nigerian capital market.

SEC's Regulatory Role

Regulates the registration of securities market operations and trading places and stipulates the rules and regulations guiding all market operators.

SEC's Public Engagement Role

Enlightens the public on the role of the capital market, determines the amount and timing of the sale of public securities, and registers all participants in the market.

SEC's Protection Role

Protects the market against all forms of abuse arising from the practice of inside information and creates the necessary atmosphere for orderly growth and development of the capital market.

Nigeria Stock Exchange (NSE)

The most important institution in the capital market, serving as the heart of the Nigerian market.

Bareback Committee

Committee set up in 1958 to explore the possibility of establishing a stock market in Nigeria.

Reasons for Setting up NSE

Committee Established due to the poor state of the financial system in Nigeria, low rate of capital formation, inability to distinguish between activities of merchant and commercial banks, and the large volume of idle cash outside the banking system.

History of NSE

Established in March 1960 as the Lagos Stock Exchange, later renamed the Nigeria Stock Exchange in 1975.

Function of NSE

Provides facilities for the purchase and sale of shares and stock, and controls quotation of shares and stock of companies and government agencies.

NSE's Market Regulation

Regulates dealing in the markets, sets and standardizes fees for services, and ensures stock-broking activities are in line with available resources.

NSE's Regulatory Support

Promotes, supports, and proposes regulations that enhance the smooth running of the market.

NSE Trading Locations

Trading floors located in Ibadan, Onitsha, Portharcourt, Kano, Lagos, and Kaduna.

THE INDUSTRIAL DEVELOPMENT COORDINATING COMMITTEE (IDCC)

Deals with the problems which investors desiring to establish business in Nigeria encountered with obtaining the required permits and approval from various ministers