Taiwo Ganiyat Olusesi, Registrar and Chief Executive of Nigerian Institute of Management (Chartered), in this interview with DAVID IJASEUN, spoke on the importance of the capital market to economic growth, the future of capital market and the impact of the Omolayole Management Lecture. Excerpts:
What is the rationale for the theme ‘The interplay between capital market and economic growth: exploring the dynamic relationship’?
The theme underscores the importance of capital markets in driving economic growth. Given the global economic shifts, it’s crucial to delve into how these two pivotal elements interact and are shaping nations’ financial landscapes, while also highlighting how robust economies can foster dynamic capital markets. Economic shifts and challenges require a deeper exploration of how capital markets are shaping national financial systems and how strong economies can foster vibrant capital markets. We chose this theme to encourage a comprehensive analysis of this intricate relationship, considering both the opportunities and potential risks involved.
What role does corporate governance play in ensuring transparency and investor trust in publicly traded companies listed on capital markets?
Corporate governance is instrumental in establishing transparency and trust among investors. It provides a framework that ensures that publicly traded companies operate with integrity, prioritize shareholder rights, and make decisions that are in the best interest of all stakeholders.
When companies prioritise good governance practices, they are more likely to operate with integrity, protect shareholder rights, and make decisions that benefit all stakeholders. This fosters confidence among investors and ultimately supports the stability and growth of capital markets.
Read also; Kyari Bukar: The vital role of capital markets in Nigeria’s economic growth
How do you see the role of capital market evolving in the coming years, especially in the context of technological advancements and changing global economic conditions?
In the face of technological advancements and global economic shifts, capital markets will likely become more integrated and digitized. Technologies like blockchain could revolutionise transaction transparency while changing economic conditions might spur more cross-border investments and collaborations. With changing global economic dynamics, capital markets will play a crucial role in securing economies against downturns and leveraging opportunities. Capital markets will also be pivotal in responding to changing global economic conditions by providing mechanisms to protect against economic downturns and leverage emerging opportunities.
What impact has the Omolayole Management Lecture Series made over the years?
The Omolayole Management Lecture (OML) has played a pivotal role in fostering public-private sector dialogues, advocating for policy reforms, and driving sustainable economic growth in Nigeria over the years. OML’s advocacy for policy changes, its role in driving economic reforms, and its promotion of best practices have collectively shaped Nigeria’s economic landscape and fostered positive change.
What are the challenges facing the Nigerian capital market? Can you prioritise these challenges based on their impact and suggest potential solutions?
Some primary challenges include market illiquidity, lack of diversified instruments, inadequate infrastructure, regulatory inconsistencies and limited investor education. Potential solutions include introducing more investment products, implementing policies that attract foreign investors, and running extensive investor education campaigns. Prioritizing based on impact:
Regulatory inconsistencies: Reforming and streamlining regulations can attract foreign investment.
Investor education: Promoting financial literacy can broaden market participation.
Infrastructure: Investing in modern trading platforms and tools can facilitate smoother transactions.
Market Illiquidity: Implementing policies to increase liquidity by encouraging trading activities can boost market confidence.
Diversification of Instruments: Expanding the range of investment products can attract a broader base of investors.
Read also; How capital markets can boost financial inclusion in Nigeria – EFInA
How do you envision the government implementing policies to increase market capitalisation and promote financial literacy in the Nigerian capital market?
To increase market capitalization, the government can provide tax incentives for listed companies, reduce barriers to entry for potential listings, and promote local manufacturing and businesses. For financial literacy, introducing capital market studies in educational curriculums and leveraging technology to reach a broader audience can be effective.
You mentioned the need for regulatory improvements in the Nigerian capital market. What specific regulatory changes or enhancements do you believe are most urgently needed?
Immediate regulatory enhancements should focus on modernizing the capital market infrastructure, promoting transparency in transaction reporting, and ensuring stricter penalties for market manipulations or infractions.
In your opinion, how can organizations and institutions like the Nigerian Institute of Management (NIM) and AIESEC Alumni Nigeria (AAN) further support the growth and development of the capital markets in Nigeria?
Organisations like the Nigerian Institute of Management (Chartered) – NIM and AIESEC Alumni Nigeria (AAN) can further support the growth of capital markets by fostering continuous dialogue between market players, regulators, and the government. They can also engage in research and capacity-building exercises, partner with international organizations for best practices, and run awareness campaigns that highlight the benefits of a vibrant capital market to the broader economy.
