The Capital Market Alliance Group 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) has
urged the incoming government of General Muhammadu Buhari to reposition
the Nigerian capital market through enhanced liquidity and capital
mobilisation.
They noted that at present, the capital market is underutilised relative to its absorptive capacity. Therefore, the federal government’s goal of diversification of the economy would be reinforced if the capital market is deepened to enable it fund the capital expenditure over the short to medium term.
They also urged the government to leverage on medium and long term fund through the capital market to finance the country’s infrastructural deficit despite the downward adjustment of the 2015 National budget.
Speaking at an interactive session with the capital market correspondents, the President, CIS, Mr Albert Okumagba explained that there are bountiful opportunities for long term capital in the Nigerian capital market but certain things must be put in place to harness the opportunities.
“The capital market can finance the entire infrastructural gaps if the government can deploy fiscal incentives to deepen the market by encouraging the companies in the telecom, power, aviation, and oil & gas sectors of the economy to get listed on the securities market,” he said.
Okumagba noted that the core capital market operators were prepared to work with the federal government to ensure full utilisation of the capital market. He also advocated for development of the commodities market to increase the number of tradable securities including futures and options derivative instruments on the underlying assets in the commodity market.
In the same vein, the chairman, ASHON, Mr 2Emeka Madubuike said that incentives should be given to listed companies and prospective companies to be listed so as to have some advantage over unlisted companies. He said policies that would promote marketability of agricultural products should be enunciated and implemented to boost operations of the commodities exchanges.
Governments at the highest level must continue to make positive statements and assurances that will engender investors’ confidence, he added. Other issues canvassed by the stockbrokers were regulatory support for the two existing Over-The-Counter (OTC) markets, National Association of Securities Dealers (NASD) and FMDQ platform to enhance expansion of their operations in the financial market.
Also, promotion of National Savings through a comprehensive review of the rules and regulations guiding the Collective Investment Scheme (CIS) amendment all clauses that are affecting the operations of the Pension Commission and reform the operations of the Mortgage institutions in order to be fully integrated into the Capital Market activities.
The managing director of APT Securities and Funds Limited, Mallam Kurfi Garuba said government should revisit privatisation in order to allow for listing of government enterprises that are operating sub-optimally, saying that the process of the privatisation should be through the capital market and not individual.
“The government needs to set up a capital market committee to work with the Bureau of Public Enterprises (BPE) to drive the process,” he said. He promised the readiness of capital market operators to support the incoming government in advisory capacity on how the capital market can be fully utilised to drive economic growth and development.
He urged the government to create opportunity for the inflow of foreign investors and diversify the economy, adding that the new government should come out with policy that will address infrastructure, reduce corruption to barest minimum and agriculture to generate more foods to the economy.
They noted that at present, the capital market is underutilised relative to its absorptive capacity. Therefore, the federal government’s goal of diversification of the economy would be reinforced if the capital market is deepened to enable it fund the capital expenditure over the short to medium term.
They also urged the government to leverage on medium and long term fund through the capital market to finance the country’s infrastructural deficit despite the downward adjustment of the 2015 National budget.
Speaking at an interactive session with the capital market correspondents, the President, CIS, Mr Albert Okumagba explained that there are bountiful opportunities for long term capital in the Nigerian capital market but certain things must be put in place to harness the opportunities.
“The capital market can finance the entire infrastructural gaps if the government can deploy fiscal incentives to deepen the market by encouraging the companies in the telecom, power, aviation, and oil & gas sectors of the economy to get listed on the securities market,” he said.
Okumagba noted that the core capital market operators were prepared to work with the federal government to ensure full utilisation of the capital market. He also advocated for development of the commodities market to increase the number of tradable securities including futures and options derivative instruments on the underlying assets in the commodity market.
In the same vein, the chairman, ASHON, Mr 2Emeka Madubuike said that incentives should be given to listed companies and prospective companies to be listed so as to have some advantage over unlisted companies. He said policies that would promote marketability of agricultural products should be enunciated and implemented to boost operations of the commodities exchanges.
Governments at the highest level must continue to make positive statements and assurances that will engender investors’ confidence, he added. Other issues canvassed by the stockbrokers were regulatory support for the two existing Over-The-Counter (OTC) markets, National Association of Securities Dealers (NASD) and FMDQ platform to enhance expansion of their operations in the financial market.
Also, promotion of National Savings through a comprehensive review of the rules and regulations guiding the Collective Investment Scheme (CIS) amendment all clauses that are affecting the operations of the Pension Commission and reform the operations of the Mortgage institutions in order to be fully integrated into the Capital Market activities.
The managing director of APT Securities and Funds Limited, Mallam Kurfi Garuba said government should revisit privatisation in order to allow for listing of government enterprises that are operating sub-optimally, saying that the process of the privatisation should be through the capital market and not individual.
“The government needs to set up a capital market committee to work with the Bureau of Public Enterprises (BPE) to drive the process,” he said. He promised the readiness of capital market operators to support the incoming government in advisory capacity on how the capital market can be fully utilised to drive economic growth and development.
He urged the government to create opportunity for the inflow of foreign investors and diversify the economy, adding that the new government should come out with policy that will address infrastructure, reduce corruption to barest minimum and agriculture to generate more foods to the economy.
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