Infrastructure deficit: VP Shettima identifies capital market as sustainable alternative to borrowing
The Vice President of Nigeria, Senator Kashim Shettima has identified a vibrant capital market to generate funding as an alternative to borrowing from foreign lenders.
The Vice President made his position known at the opening ceremony of the 3rd West Africa Capital Market Conference (WACMaC) with the theme: “Infrastructural Deficit and Sustainable Financing in an Integrated West African Capital Market” held in Lagos.
He said, “The centrality of the capital market to Nigeria’s development trajectory especially to the evolution of the corporate sector, industries and most importantly infrastructural development cannot be over emphasiSed.”
Shettima who was represented by Mr. Tope Fasua, Special Adviser to the President on Economic Affairs in the Office of the Vice President of the Federal Republic of Nigeria, said, “That thus, it is a time of intense competition among nations and resources, and with advancement in technology, nations can reach to nations with their products just as businesses have their fingers in billions of pockets the world over.”
The Vice President said, “Innovations have turned out more than ever to be both a potent advantage and disadvantage depending on one’s readiness to engage. Indeed it is said that the best way to prepare for the future is to create it. Where are we on this? Whereas capital market development in any nation is not an easy task, much less its maintenance and sustainability.
“We must commend the efforts of entities, governments, corporates and individuals across West Africa who have over the time come together to put in the shift that got us here. There are three exchanges in the sub region, Nigeria, Ghana and Cote D’ivoire with others coming up. The question is why have other West African nations not developed their exchanges? How do they hope to leverage on the advantage of capital formation, corporate governance and also to get companies fund in them to someday play big on the global stage?”
In his opening remarks, the Director General of the Securities and Exchange Commission and Chairman of the West Africa Securities Regulators Association, WASRA, Mr. Lamido Yuguda stated that the Conference (WACMaC) was conceived as a platform to address crucial issues related to the orderly growth and development of regional and continental capital markets and jointly hosted by WASRA, the Economic Community of West African States (ECOWAS), the West Africa Capital Market Integration Council (WACMIC), and the West African Monetary Institute (WAMI).
Yuguda said, “In 2010, the establishment of the West African Capital Market Integration Council (WACMIC) marked the inception of our collaborative effort to create a seamless and unified capital market within West Africa. Five years later, the formation of the West Africa Securities Regulators Association (WASRA) further solidified this commitment to harmonizing the regulatory environment for financial securities issuance and trading.
“WACMIC and WASRA bring together the securities exchanges, central securities depositories and commissions of the sub-region, comprising Cape Verde, Ghana, Nigeria, and the Union Economique et Monétaire Ouest Africaine (UEMOA), with Morocco as an observer member. Our mission, as outlined in the ECOWAS Commission Treaty, is to facilitate the issuance and trading of financial securities across the region.”
The WASRA Chairman stated that, “These gatherings have been instrumental in shaping the integration project, expanding the membership of WASRA and WACMIC to include Cape Verde, and advancing our collective mission.
“Nigeria, with its vibrant capital market and a market capitalisation of USD 98. 28 billion, is proud to host the 3rd WACMAC. This conference takes place at a time when Nigeria’s President, His Excellency, Asiwaju Bola Ahmed Tinubu, GCFR, serves as the Chairman of ECOWAS, underscoring Nigeria’s pivotal role in the region.
“We are confident that this event will foster integration, encourage capital formation, promote tourism, and attract investors.”
In an address, Executive Governor of Lagos State Mr. Babajide Sanwo-Olu said the co-operation between the various bodies fortifies the bedrock of the W/African region fostering a collaborative spirit among member states.
Sanwo-Olu said governments are actively aware of the imperatives of addressing infrastructure deficit and sustainable financing in the region. He said the theme of the conference is especially apt for the moment as across the sub-region, modern infrastructure such as roads, rails, ports, fibre optics connectivity power etc. are largely inadequate.
“These perennial inadequacies have hindered the economic growth of our various nations and the economic development of our people. It behooves us therefore to deliberate on ideas, and financial strategies that can bridge these infrastructural gaps, enhancing the quality of life of our people and propelling our economy to greater heights.
“While governments like ours continue to make efforts at plugging the huge infrastructural deficits, we cannot do it alone and that is why we are collaborating with you and saying we are waiting to see the types of innovative instruments and ideas that you can bring forward for us to be able to do the quick and very difficult work that you have asked us to do.”
