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FG urged to utilise Stock Market for infrastructural financing

By on January 31, 2015

Stakeholders in the Nigerian capital market have unanimously called on the Nigerian government to tap into the enormous resource available in the capital market to finance critical infrastructure and ensure sustainable economic growth.

They made this known at a one day dialogue tagged: “The Capital Market and The 2015 Federal Budget.”

The event was organised by the Chartered Institute of Stockbrokers (CIS), the Association of Stockbroking Houses of Nigeria (ASHON) and the Association of Issuing Houses of Nigeria (AIHM).

In his opening remark, the President of CIS, Mr. Albert Okumagba, stressed that the time has come for the government to use the capital market to finance power, road infrastructure, railway and other areas where long term financing is required.

He said the forum is a clear statement of their readiness to engage critical stakeholders in the economy on how to make the capital market the centre piece of Nigeria’s development.

According to him, the CIS and other stakeholders in the capital market will continue to bring players in the economy together to brainstorm on how to mobilise savings for investment in critical infrastructure in the economy.

In his remarks, the Acting Director General of the Securities and Exchange Commission (SEC), Mallam Mounir Gwazo, said the SEC as part of efforts to sell the capital market will soon rollout global investment strategies that will also strengthen the capital market.

Represented by Edward Okolo, he said the government is coming out with strategies to deal with global headwinds and revenue shortfall.

He stressed that the capital market must be the most important medium for government to fund critical infrastructure adding that in time like this, the capital market has a huge role to play in funding government’s developmental plans.

In his key note address, the Chairman of Capital Bancorp, Mr Olutola Mobulurin stated that the capital market must be supported so it can play its role of providing long term finance for development.

On how this can be achieved, he said that there is a need to expand the local institutional investors capacity to invest in the market.

Pension Fund Administrators (PFAs), he said, must play a larger role in expanding the local institutional investors capacity adding that 20 per cent of all PFAs investments must be in equity.

 

[ThisDay]