The Federal Government has said it will continue to support Nigeria’s Capital Market by providing the enabling environment, and by making the necessary legal enactments to assist operators in carrying out their functions efficiently.
Minister of Finance, Zainab Ahmed noted this in Abuja at the national workshop of the Chartered Institute of Stockbrokers (CIS).
The Ministry of Finance has been working closely with the Chartered Institute of Stockbrokers over the years as the ministry is statutorily represented on the Governing Council of the Institute.
“There is a lot of work to be done in building the Nigerian economy and achieving the pace that is needed to make double-digit growth a reality. I wish to pledge government’s continuous support and partnership with the Nigerian Capital Market and the Chartered Institute of Stockbrokers as we continue the task of nation-building” she said.
The workshop is themed: leveraging the financial markets to achieve double-digit economic growth for Nigeria.
The workshop had in attendance securities traders, financial market experts, regulators, economic influencers and other major stakeholders within the Nigerian financial market to strategise on how to achieve twin tasks of accelerating economic development and realizing the dream of sustained double-digit economic growth for Nigeria.
“The Nigerian capital market has provided, over the years, access to significant long term development capital to the Federal Government and other tiers of government and private sectors. In an attempt to achieve consistent economic growth, earlier in the life of this administration, the government developed the Economic Recovery and Growth Plan (ERGP) 2017 – 2020, a medium-term plan designed to foster growth and build a globally competitive economy through diversification of the economy, increased investment in infrastructure, digitalization of the economy, and improvement in the ease of doing business in the country”, she further noted.
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In 2020, the Federal Government of Nigeria, through the Debt Management Office (DMO) raised N669.12billion from the capital market, through its 3rd Sukuk bond offering, with the proceeds used to construct and rehabilitate as many as 44 major roads across the country.
Also worthy of note is the Offer for Subscription of the Federal Government of Nigeria Savings Bond (FGNSB) by DMO and executed by Stockbrokers. In addition, the Federal Government of Nigeria accessed the International Capital Market (ICM) with Eurobond issuance to finance capital budget deficit.
“As our various budgetary allocations and policy pronouncements will attest to, this administration has demonstrated unprecedented commitment towards bridging the country’s massive infrastructure deficit.
“Just a few months ago, the government approved the establishment of the Infrastructure Company, which is envisaged to become a world-class infrastructure development vehicle for Nigeria. The company will serve as the platform for seamless public-private partnership in infrastructural financing in the country, effectively interfacing with institutions such as the Central Bank of Nigeria, the Nigeria Sovereign Investment Authority, pension funds and other financiers, home and abroad.
“The role of CIS in the Nigerian economy cannot be overemphasized. CIS plays a vital role in the development of the capital market as it is the professional institute established by Act 105 of 1992 to provide certification for professionals in stockbroking, securities and investment, fund and portfolio management, asset management, investment management, and other related fields. It is responsible for the regulation and discipline of members of the profession in Nigeria.
“The Institute also provides training for professionals in stockbroking, securities and investment, Fund and portfolio management, asset management, investment management, and other related fields”, the minister said.
Olatunde Mohammed Amolegbe, President and Chairman of Council Chartered Institute of Stockbrokers said the theme for this year’s CIS National Workshop became imperative to drive the Nigerian economy.
“Driving the economy will require financing of the right form, type, and mix. Despite the governments best efforts, the local financial market cannot be said to have been utilized optimally as at yet. This trend must be reviewed and reversed.
Not long ago the Capital Market use was the fulcrum of Fund Raising by all the different tiers of government. Such fund is always utilized for infrastructure development. Full subscription to the government’s revenue bond which is a form of borrowing is was widely used as the risk level is almost nil.
“Besides, governments’s participation in the market is a win-win affairs for the government, the market, and investors. The time has come for all tiers of government to stage a comeback to the financial market to enhance capital raise for infrastructure development.
“It is obvious that an accelerated development of infrastructure will bring about job creation and employment opportunities with multiplier effects on the nation’s GDP. China’s GDP grows at an average of 10percent per year. This has lifted over 800 million people out of poverty in recent years.”
Amolegbe said, “We see ourselves as government’s Partners–In-Progress in the private sector, and this Workshop is only an effort to complement that valiant work that the Federal Government has been doing in steering the economic ship of the country. We believe that it is only by working together in unity that Nigeria can attain greater heights and the standard of living that the government envision for all Nigerians.”
