In pursuit of their roles as economic engineers and agents of wealth creation, stockbrokers in Nigeria are warming up to prepare a roadmap on how the Federal Government can leverage the capital market to put Nigeria’s dwindling economy on sound footing.
By this strategic move, stockbrokers shall on Wednesday, November 4 and Thursday, November 5, 2020, converge for the 2020 Annual Conference of Stockbrokers on both physical and virtual mode to articulate options for the nation’s economic revival with the Theme:
“Navigating through the Storms-reenergizing the Economy through the Capital Market”.
The Conference, coming at a period when the Nigeria’s Vice President, Professor Yemi Osinbajo says that government is seeking alternative avenues for money, will attract indigenous and foreign finance and investment experts, top level government functionaries, capital market regulators, investors and other members of the capital market ecosystem.
“The significance of this year’s Theme, is better appreciated against the backdrop of the current situation whereby the Federal Government is in dire need of fund to finance the economy. The key messages to the government and companies in Nigeria are that of hope and renewal by taking advantage of opportunities to source long term fund through the capital market.
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“The Federal Government should access medium and long term fund from the market to finance budget deficit and build infrastructure among others. Companies should also explore the market to shore up working capital, invest in Information and Communication Technology (ICT) grow business, enhance profitability and boost return on investment (ROI).”, says Olatunde Amolegbe, the President, CIS.
Corroborating him, the Institute’s Registrar and Chief Executive, Adedeji
Ajadi noted that Covid-19 pandemic had necessitated the need for comprehensive turnaround of Nigeria’s economy.
“We are sending a poser to the government: With the challenges of Covid, a looming recession and other economic issues in Nigeria, how do we turn our economy around? We are suggesting that, if wellexplored, the capital market can be a major catalyst to drive the desired growth, and take us through the ‘storm’,” says Ajadi.
Some of the issues that will dominate discussion of seasoned experts from diverse professional background include : Alternative Investments: How to Invest when Traditional Options Taper;?the Nigerian Stock Exchange Demutualization: Demystifying the Big Picture; Infrastructure and Deficit Funding: Bridging the Gap via the Nigerian Capital Market and Rebirth of CAMA: Implications for Capital Market Ecosystem.
Federal and State Governments had several times raised capital through the market to fund development projects. Recently, the Federal Government raised N200 billion through its Sukuk 1 and 11 to fund over 26 roads across the six geopolitical zones in the country.
Nigeria, the largest country in Africa by population, is battling with myriad of economic challenges. Its ability to realize optimal economic potentials is constrained by structural issues, including inadequate infrastructure, limited foreign exchange capacity, trade barriers, growing unemployment, investor apathy, spiraling inflation and other macroeconomic vagaries.
Government’s penchant for borrowing to finance budget deficit has consistently drawn the ire of economic experts who often express concerns on the implications of debt burden on the nation’s monetary policy.
The high profile Annual Conference is a platform for engaging discussion of issues to move the economy and market forward.
