Expert Calls for Deepening of Financial Markets

By Ugo Aliogo and Joan Madubugwu

The outgoing Co-chairman, Electronic Certificate of Capital Importation (ECCI), Mr. Wale Abe has called for deepening of the financial markets in order to boost growth, just as he urged the federal government to take a cue from developed economies around the world. Abe stated this in Lagos recently, during a farewell ceremony organised in his honour by the ECCI. According to him, the ECCI project is a step that would help to deepen the financial market.

He also noted that the project would lure foreign investors to the country, adding that if the process is managed efficiently, it would help to generate more data and information which, “would be very important for decision-making process among the Central Bank of Nigeria (CBN) and the banks.”

Abe further stressed that when the market is deepened, there would be more instruments, noting that presently stakeholders are more concerned with excess liquidity, but when the market is deepened, more instruments are created and liquidity also flows.

“Then you will discover that you are generating profit efficiently and the market is attractive. Funds move anywhere provided that there are high returns,” he added.

He urged operators to imbibe ethics, saying that banking and finance is all about trust.

“Those in the industry should operate on the basis of professional ethnics and principles. Banking is such a conservative profession. If you are progressively conservative, you can make a success out of banking, not necessarily because you retire into billions. Rather wherever you find yourself you can use the knowledge you have acquired over the years to design anything.

“For the younger ones coming behind, they should not aspire to be at the top very early. This is not the way it should be. They should take their time, learn, re-learn and acquire skills in various areas of assignment.

“This will help them rise steadily. Their rise to the top should be slow and steady. Banking is about risk management. The financial market will always be there to facilitate growth and development because whatever transaction you want to make, you have to do it through the banking system,” he said.