Financial markets essential for economic growth – Stakeholders

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Nigerian financial market participants stressed the strategic importance of the sector for the economic growth and development of the country.

Finance, Budget and National Planning Minister Zainab Ahmed at the Chartered Institute of Stockbrokers National Workshop 2021 said the federal government will continue to enact laws to globalize the Nigerian capital market.

She said the market has contributed immensely to the country’s development, citing, among others, the 2017-2020 economic recovery and growth plan.

She also pledged continued government support and partnership in the capital market.

The Managing Director of the Securities and Exchange Commission, Mr. Lamido Yuguda, speaking at the event, expressed the need to strengthen the capital market to accelerate domestic production and employment, given the direct correlation between increased production and job creation.

He said there was a need to take advantage of the capital market for intermediation by facilitating access to capital.

He said: “Infrastructure is where we have a major problem, and here I mean road and rail transport, power generation and distribution, health infrastructure, etc.

“I believe the capital market can play a vital role in financing infrastructure, and forums like this would do well to dwell on this important topic.”

In his address, the President and Chairman of the CIS Council, Mr. Olatunde Amolegbe, lamented that despite its immense human and natural resources, Nigeria still ranks among the poorest countries in the world in terms of per capita income.

Amolegbe said the theme of the workshop, “Harnessing the Financial Market to Achieve Double-Digit Economic Growth for Nigeria,” had become imperative to boost the country’s economy as this would require funding in the right form, from right type and the right combination.

He said that despite the government’s best efforts, it could not be said that the local financial market has been optimally used yet, adding that the trend needs to be reviewed and reversed.

He said: “It wasn’t that long ago that the capital market was the backbone of fundraising by all different levels of government. This fund is still used for infrastructure development. Full government tax liability subscription, which is a form of borrowing, has been widely used because the level of risk is almost zero.

“In addition, government participation in the market is a win-win business for government, the market and investors. The time has come for all levels of government to organize a return to the financial market to improve capital raising for infrastructure development. ”

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