Why the FG Should Use the Nigerian Capital Market to Support Economic Growth

Tuesday, January 25, 2022 / 10:50 AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV

The Federal Government should explore more capital market ways to support national economic development.

Mr. Olatunde Amolegbe, FCIS, the President of the Chartered Institute of Stockbrokers, stressed this point while providing his perspective on "How The Capital Market Can Support Nigeria's Economic Growth". According to him, the government needs to provide incentives to increase capital market activities.

He cited the Chartered Institute of Stockbrokers (CIS) recommendation on Nigeria's 2022 economic outlook, stating that recent policy steps like the commercialization of the Nigeria National Petroleum Corporation (NNPC) should be followed up with the public listing of its shares on the stock market.

Speaking further, he called on the government to prioritize its philosophy of building a private sector-led economy, as enshrined in the National Development Plan 2021-2025.

Regarding infrastructure financing, he called on the Federal Government to discuss with capital market operators how to promote better funding of the 2022 budget without overshooting statutory borrowing limits.

On the proposed revised 10-year SEC Capital Market Masterplan, he called on the apex regulator to chart a pathway that will ensure time efficiency, cost efficiency, operational efficiency and high value for innovation in the ecosystem. He also stressed the need to delineate stakeholders' roles to avoid overlapping.

According to him, SEC Nigeria should reposition the market through the recent capital market master plan to achieve global competitiveness.

The low participation of states in the capital market may reflect their inability to meet the terms of the market's procedures and regulations. The CIS President urged the states to rethink and re-strategize their fiscal and public finance management.

He said that the states must have sound fiscal governance to leverage the capital market.

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