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Thursday, November 05, 2020
/ 3:17 PM / Nifemi Taiyese for Proshare WebTV / Header Image Credit: WebTV
Nigeria's sustainable economic
growth and stability can be achieved by leveraging the capital market. This was part of
the key takeaways from the 24th summit of the Chartered
Institute of Stockbrokers (CIS) which discussed the theme "Navigating Through
The Storms: Re-energizing the Economy Through The Capital Market".
Mr. Olatunde Mohammed Amolegbe, FCS,
President, and Chairman of the Governing Board of CIS Nigeria in his welcome
address said the conference was the family gathering of stockbrokers from all
walks of life. He acknowledged that the 2020 meeting was the first virtual
conference of the Institute.
"This year has been one of the most
demanding in recent memory because of the COVID-19 pandemic and social
upheavals witnessed in Nigeria recently. The two issues combined have set the
Nigerian economy back by several billions of naira with the attendant problem
of providing sustainable livelihood for millions of citizens".
He further stated that finding a solution
to the issue of raising capital to fund growth was a key objective of the
conference.
Professor Olalekan Oyenusa representing
the Executive Governor of Osun state, Mr. Adegboyega Oyetola, delivered the
opening address, noting that because of the coronavirus pandemic, the Nigerian
economy was currently largely depressed and urgently needed fresh ideas.
Oyenusa noted that the conference theme
aptly captured the desire to provoke and contribute to solutions to raise the
Nigerian economy from the backwaters of depression.
He brought to the fore the recent
youth-led protest, which showed what could happen if nothing was done to create
enduring and inclusive policies.
He identified stockbrokers as
professionals at the vanguard of wealth creation. He noted the importance of
investors in accelerating economic growth and observed the critical need for
stockbrokers to come up with bright ideas towards pathways to development for
Nigeria.
Hon. Babangida Ibrahim, ACS, Chairman
House Committee on Capital Markets described the conference and its theme as
timely, unique, and important at the present state of the nation's economy and
with the after effects of a first wave of COVID-19.
"Our national dilemma demands
collaborative efforts from all fronts and perspectives to weather the storm and
generate sustainable economic outcomes for Nigeria," the lawmaker said.
He commended the Institute for the
foresight to meaningfully chart a pathway that would help solve the problems
facing the economy.
The House member noted that the
conference speaks to the character and serious-mindedness of the leadership and
members of the CIS. Hon. Ibrahim expressed confidence that the conference would
add value to the national discourse on economic growth and development.
The Chairman, Senate Committee on Capital
Markets, Senator Ibikunle Amosun, FCA, in his
special remarks said the conference was coming at a time when the
government and private sector, were independently and collaboratively exploring
ways to strengthen the capital market and diversify the economy.
He noted that it was pertinent to
recognize the capital market as a major segment of the Nigerian economy, that
could provide solutions to the problems that the country is presently
experiencing. He observed that the capital market could help in the areas of
wealth creation, development financing, job creation and growth of national
domestic product (GDP)s.
Amosun said it was important that
stakeholders work together to ensure that the values inherent in the capital
market was explored to achieve the national objective of sustainable and
equitable economic growth and development.
The Senator assured stakeholders
that the Senate Committee on Capital Markets was ready to collaborate with the
CIS and other key parties, at addressing the several challenges inhibiting the
smooth operations of the Institute and other professional bodies within the
sector.
He also mentioned that the committee will
ensure prompt passage of relevant bills that will standardize the training and
certification for all professionals operating in the capital market.
Furthermore, the Senate Committee On
Capital Market is ready to provide legislation that will address the issue of
multiple taxation and unclaimed dividends, which are fast becoming threats
hindering the growth of the capital market.
Representing the Director-General of the
Securities and Exchange Commission (SEC), Mr. Dayo Obisan, Executive
Commissioner Operations, SEC Nigeria said the conversation could not have come
at a better time as the economy has weathered some serious storms in recent
times, ranging from weak global growth, a decline in crude oil prices, foreign
exchange issues, government revenue challenges, high inflation, high
unemployment rate, rising poverty levels, food/security challenges, slow GDP
growth and recently the COVID-19.
He observed that it was critical to
strategize and proffer workable solutions for economic recovery which makes the
conference theme apt and timely.
Speaking on areas where the capital market
could be leveraged to navigate the storms and reenergize the economy, Obisan
addressed the following;
"Capital is critical to the growth of
businesses and the capital market provides opportunities to issuers to access
long-term capital to fund operations and expansion projects," Obisan said.
He said the SEC would ensure that the
regulatory framework and policy environment remains supportive as all relevant
stakeholders strive towards ensuring that the capital market is positioned to
facilitate the recovery of the economy.
President of the Nigerian Stock Exchange
(NSE) Otunba Abimbola Ogunbanjo in his remarks highlighted the fact that the
COVID-19 outbreak created a financing gap that threatened to destabilize the
government's fiscal position.
According to the NSE's President,
the Nigerian capital market was not spared, foreign portfolios investors who
account for an average of 50% of transaction flows immediately identified
imminent risk of declining foreign reserves and began pulling out of the stock
market in droves.
"These portfolio investors recounting
their experience in 2016 immediately took a flight to safety for fear of a
pronouncement on capital controls by the monetary authorities. However, the
resilience of the capital market against the COVID-19 has been commended
globally as the market recorded gains of 8.1% and 9.8% respectively in April
and May 2020," the NSE President said.
The recovery has been mainly fueled by
domestic investors who now account for about 62% of total market transactions
as of September 2020.
He admitted that with the emergence of a
broader domestic investor base, there was new opportunity for users as well as
providers of capital to collectively catalyze the recovery of the economy
with the capital market serving as an intermediary.
The event featured two separate panel
sessions.Mr. Asue Ighodalo Co-Founder Banwo and Ighodalo gave the pre-panel
keynote speech for the first plenary session themed: “Rebirth of CAMA:
Implications for the Capital Market Ecosystem†with the CEO of Frontier Africa
Reports Mr. Boason Omafaye moderating the session. It featured the following
discussants; Dr. Jumoke Oduwole Senior Special Adviser to the President on the
Ease of Doing Business, Professor Usman Muhammad Shua'ib, Dean Faculty of
Law, Bayero University Kano, and Associate Professor Franklin Ngwu of the Lagos
Business School.
The second plenary session 2 themed "Alternative Investments: How to Invest When Traditional Options Taper", was
moderated by Tunji Andrews Founder Awabah Nigeria. The pre-panel keynote speech
on "Alternative Investments in a Tapering Economy" was presented by
the MD/CEO NASD, Mr. Bola Ajomale.
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