Stockbrokers Urge FG To Utilise Capital Market For Growth

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Ms Mary Uduk, Acting Directior General at Securities and Exchange Commission, SEC Nigeria

In what amounts to agenda setting, stockbrokers have collectively urged the federal government to take advantage of investment opportunities in the capital market to mobilise funds to execute development projects.

Besides, they identified communication gap between the government and the market as one of the reasons for government’s inability to put the capital market on the front burner of Nigeria’s economic revival strategy, urging government to place the market on the same pedestal with money market without further delay.

In an interactive session between the stockbrokers and federal government’s economic team in Lagos, the president and chairman of Chartered Institute of Stockbrokers (CIS), Mr. Adedapo Adekoje explained that the federal government needed to utilise the capital market to fund the 2019 fiscal budget with ease.

According to him, government’s investment through Savings Bond and similar asset classes could not fully finance infrastructural deficit, hence, the urgent need to float Revenue Bonds in addition to General Purpose Bonds.

Adekoje reiterated the need to re-constitute the board of the Securities and Exchange Commission (SEC) and accord the Commission a status of independence like the Central Bank of Nigeria (CBN) in line with the global best practices.

The representative of vice president and Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah assured stockbrokers of government’s willingness to partner with the market operators to ensure double-digit growth presented various efforts of the government to ensure sustainable growth of the economy.

In his presentation titled ‘Re-Building An Economy’, Enelamah explained the status report of the programmes such, as ease of doing business in Nigeria, industrial policy and competitiveness, special economic zones, targeted sector policy reforms and trade agreements among others.

He advised stockbrokers to make their specific needs known to the government, assuring them of prompt response.

Corroborating him, the executive secretary and chief executive officer, Nigeria Investment Promotion Commission (NIPC), Ms. Yewande Sadiku explained the efforts being made by the Commission to attract investors across the globe into Nigeria through an array of incentives.

Sadiku advised stockbrokers to visit the website of NIPC regularly and make input on how to attract investors. Past president of CIS Mr. Mike Itegboje explained that developed economies leveraged on the capital market for economic growth and development.

He urged the government to borrow a leaf from countries such as the United States of America and China which deliberately place premium on utilisation of their capital markets for developmental purposes.

“The U.S. capital markets are the bedrock of the nation’s economy and the deepest and most liquid in the world. That depth and efficiency is evidenced by the size of the gross domestic product, the strength of the US commercial sector, the level of home ownership, and the vast national infrastructure across the fifty states in comparison to the rest of the world,” said Itegboje.

Acting director-general, Securities and Exchange Commission (SEC), Ms. Mary Uduk advocated privatisation of moribund government enterprises by using the capital market as a platform. According to her, this will not only ensure revival of the companies but deepen the market after listing.

Uduk underscored the essence of the Commission’s 10-year Development Plan designed to make Nigeria’s capital market competitive.

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