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.
The brokers, who are doing this in pursuit of their roles as agents of wealth creation, will converge on November 5, for the 2020 annual general conference under the aegis of Chartered Institute of Stockbrokers (CIS).
The conference has as its theme: “Navigating through the storms-re-energizing the economy through the capital market.” Coming at a period when the Nigeria’s vice-president, Professor Yemi Osinbajo, has said that government is seeking alternative avenues for money, the conference 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.
Commenting, the President of CIS, Olatunde Amolegbe, said: “The significance of this year’s theme, is better appreciated against the backdrop of the current situation whereby the federal government is in dire needof 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.
“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).”
Also speaking, the Registrar and Chief Executive of CIS, Mr. 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 well- explored, the capital market can be a major catalyst to drive the desired growth, and take us through the ‘storm,” Ajadi said.
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.
Meanwhile, the bearish trend was halted yesterday as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.02 per cent.