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Operators, FG open dialogue on 2015 budget

By on January 16, 2015

Capital market operators under the aegis of the Chartered Institute of Stockbrokers (CIS), Association of Stockbroking Houses of Nigeria (ASHON) and Association of Issuing Houses of Nigeria (AIHN) have initiated a special dialogue with the federal government and key stakeholders in the economy to ensure proper alignment of the capital market to Nigeria Fiscal and Monetary policy implementation.
The first in the series, the one-day dialogue with the theme: “The Capital Market and the 2015 Federal Budget”, is scheduled for January 29, this year in Lagos.

In a statement on Wednesday, CIS president, Mr. Albert Okumagba said the dialogue would provide the participants with an opportunity to dissect this year’s budget and identify its implications on the Capital Market.

He said the forum would strengthen the connection between the capital market and the economy, re-establish the capital market as the key driver for the Nigerian economic growth and development, open-up opportunities that could increase the market size from its current N11 trillion capitalisation to N100 trillion within the next three years and effectively reinforce the Federal Government’s plan to explore various sectors of the economy for economic development.

“The critical areas of concentration shall include diversification and dualisation of the commodity exchange in such a way that serious investors can drive commodity exchange while the Federal Government can be allowed to hold on to the existing Commodity Exchange.

“This diversification will help the operators in the private sector to own their commodity exchange. Over-the-Counter market would also be given adequate attention as the dialogue shall provide a platform to appreciate it’s benefits to the Nigeria economic development,” Okumagba said.

Corroborating Okumagba, the President, ASHON, Mr Emeka Madubuike said the rationale for the dialogue was to discuss how the capital market can partner with the federal government in raising funds to finance the 2015 national budget. According to Madubuike, the forum would articulate why the capital market should be central to all economic development activities in Nigeria.

ASHON’s General Secretary, Mr Akin Akeredolu-Ale explained that Nigeria runs a mono-income economy; hence, the dialogue is intended to discuss measures for effective diversifications of the entire economy.
Akeredolu-Ale noted that the dialogue would sensitize the government on the need to galvanise the private sector into financing the diversified economy and provides alternative means of funding the budget.

On the role of the Issuing houses in the scheme of things, Okumagba said they would begin to identify the problems and take the solutions to the investors.  He stated that the market would become bigger and accommodate more investment opportunities.

“The Capital Market is the ideal mechanism to engage the federal and state governments for effective and efficient economic growth and development”, Okumagba said.

 

[ThisDay]