Stockbrokers Propose Strategies to Achieve $1.0trn Economy through Capital Market

Kayode Tokede

Nigerian Stockbrokers have identified strategies by which the federal government can deepen the capital market to achieve its proposed $ 1.0 trillion economy without increasing borrowing or deploying ways and means to finance the economy. 

In a communique signed by the 13th President and Chairman of Council of Chartered Institute of Stockbrokers (CIS), Mr  Oluropo Dada and the Registrar and Chief Executive, Dr Josiah Akerewusi, the  Institute urged the federal government to list Nigerian  National Petroleum Company Limited  (NNPCL)  and other moribund  state enterprises on the secondary markets  to deepen the markets, enhance the companies’ ability to make  profit and generate revenue  for the government through tax. 

The stockbrokers had last month converged at Ibadan, Oyo State for their 28th Annual Conference Themed: “Capital Market as Catalyst for the $1.0 trillion Economy,” which brought together, top decision makers and leading Chief Executive Officers in various sectors of the economy.  

Participants canvassed the need to  rebase the Nigerian GDP to reclaim the country’s status as Africa’s largest economy to create opportunities to achieve the $1.0 trillion target. They noted that the informal economy constituted  a significant portion of Nigeria’s GDP but remains largely untapped by the capital market.

“Policies should entail incentivizing indigenous and privatized companies, as well as SMEs, to list on the Nigerian capital market. This can be achieved through tax holiday and patronage of products and services of quoted companies. Government should conclude the ongoing review of Investment and Securities Act (ISA) while the capital market regulators should review relevant rules and laws in line
with the global best practices to boost investor confidence, create a favourable business environment for listed companies and remove restrictions hindering liquidity access for stockbrokers. 

“The Nigerian capital market should be integrated into Fintech solutions, blockchain technology, and other digital innovations to enhance accessibility, efficiency, transparency and attraction of Millennials, Gen Z, Gen Alpha etc while market operators should develop products that attract investment appetite of the technological savvy youths. Government should address foreign exchange challenges and other inhibitions to participation of foreign investors in Nigeria. This will also enhance Foreign Direct Investment (FDI),” they said.