Story by Kayode Tokede
The Chairman, House of Representatives Committee on Capital Market and Institutions, Hon. Babangida Ibrahim has said the federal government is ready to partner with Chartered Institute of Stockbrokers (CIS) to boost and enhance the capital market’s competitiveness
Speaking at the 2019 edition of the CIS’s annual conference held in Lagos on Thursday, on the theme ‘Boosting capital market competitiveness in a challenging macro-environment’, Ibrahim, said that the theme is timely and addresses the need for effective policies that will drive the market forward.
According to him, the investors’ confidence as well as unclaimed dividends remain the major issues affecting the growth and development of the capital market and called on the Institute to devise means of bringing up policies that will affect the market and the economy positively.
In his words, “I want to assure this Institute that the committee is ready to work with the CIS and already the National Assembly and House of Reps in particular are aware of the major challenges facing the capital market in recent times. As a result of that, we have already started engaging with some of the key stakeholders including the Institute on the best way forward.”
He also noted that there are certain actions to be taken in order to boost the competitiveness of the market, saying that “One of the challenges facing the capital market is investors’ confidence because of the inability to get the kind of gains they want.”
Vice-Chairman, Senate Committee on Capital market, Senator Binos Yaroe, charged the Institute to come up with policy proposals that will enhance the competitiveness of the market.
Speaking further, Minister of the Federal Ministry of Industry, Trade and Investment, Otunba Richard Adebayo, said it will also be a welcome idea if the CIS can come up policy proposals to support and address Nigeria’s infrastructure challenges while government will incentivize and provide the enabling environment to support this objective.
He said, “We declare our willingness to partner with the CIS in ensuring the necessary enabling environment that will further stimulate and boost competitiveness in the capital market as well as ensure a coordinated and integrated approach to Nigeria’s financial sector is attainable.
“The best way to improve competitiveness is through a mixture of policies designed to help, improve capital market competitiveness.”
For her own part, former director-general of Nigerian Stock Exchange (NSE), Ndi Okereke-Onyiuke, explained that to attract investments, the government needs to work with stockbrokers so as to enhance the development of the market as well as the economy.
According to her, the Central Bank of Nigeria (CBN) is not in charge of investments, they are not wealth creators but they make policies only when there is money to spend. Rather, it is the stock market that create wealth in any economy. Hence, the interaction between the government and market stakeholders is key in growing the economy at a faster rate.