National Assembly recommends N5bn to rejuvenate capital market

As part of measures aimed at protecting investments in the capital market, the National Assembly has recommended that N5billion be set aside to rejuvenate the market.

To this end, a two-day stakeholder’s forum on Capital Market and Nigeria Economy has been slated to hold in Abuja on June 6 and 7.

At a joint press briefing by the National Assembly Joint Committee on Capital Markets and Institutions, Isiaka Adeleke, said the fund christened ‘Investment Security Protection Fund’ would ensure that investors’ funds are secured.

Adeleke who chairs the Senate Committee on Capital Markets and Institutions, said the forum intends to create an enabling legal environment for the achievement of the recommendations of the 2015 to 2025 Capital Market Master Plan.

“The first thing we did at our inaugural meeting was to set aside about N5billion to protect investment fund, call it Investment Security Protection Fund. So, if you put your money there, you will be secured that you will be able to get some returns”, he noted.

The move, he said, is the catalyst for achieving infrastructural and development needs of a diversified economy.

Vice Chairman of the Committee, Foster Ogola, stressed that the capital market is a veritable institution for raising long term funds, while calling on states and local governments to tap into opportunities therein.

The lawmaker stated that there is need to stimulate the capital market through legislation.

His words: “We are trying to expand the coast for all the stakeholders because state governments can’t pay salaries. And in that circumstance, they cannot have surplus funds to develop. But the capital market is there. They can go and take bonds and pay unit digits or very little interest rate compared to the commercial banks. And have a breathing space, not issuing ISPO to collect overdraft. But having money that can stay with them for the next 15 to 20 years to pay back. Every other country that develops passes through this critical stage”.