“Economic and money market activities remain key to capital market recovery” – Onasanya
July 6, 2012 / Proshare News
In an assessment approach and recommendatory modes of “Rejuvenating the Nigerian Capital Market for sustainable Growth and Global Competitiveness (regarding, Issues, Challenges and options)”, experts in the financial market have revisited the circumstances surrounding the stocks market and submitted soluble guidelines.
At the 8th Annual Public lecture of pearl Awards for Capital Markets Development, held recently in Lagos, the Distinguished Guest Lecturer, GMD/CEO, First Bank of Nigeria Plc, Bisi Onasanya addressed the topic "Rejuvenating the Nigerian Capital Market for Sustainable Growth & Global Competitiveness: Issues, Challenges & Options".
Taking the audience down memory lane of activities that grew the market between 2004-2008, Onasanya capped the section by proffering that in reviving the Nigerian Capital Market, a decent and trusted regulatory environment must be instituted; corporate governance framework be instilled; resolute actions be taken to re-list delisted companies; market markers given the needed access to fund and stock lending as well as ensure the listing of the Telecommunication companies with given incentives rather than by compulsion.
Noting that less than 10 percent of the listed equities are actually trading, he calls for focus on the segment for investments. The First bank boss also remarked that the Pension Asset which today has less than 10 percent representation in the Nigerian Capital Market should be amended for increased profitability through the capital market.
On his own part as the Lead Discussant at the same event, MD/CEO Proshare Nigeria Ltd., Olufemi Awoyemi noting the nexus between the capital market and the economy presumes that the 7 percent increase in the GDP rate of Nigeria is negative.
On suggestive solutions to the capital Market downtrend, Awoyemi simplified the term for listing in the Exchange, the Telecoms companies in Nigeria, holding that in the forthcoming renewal of licenses for the Telecoms companies by the Nigerian Communications Commission (NCC), rather than making it mandatory, it should be ‘obligatory’ for the firms to list. It was equally Awoyemi’s submission that the retail market be technically revived while the market markers be given the leeway to operate with access to fund.