CIS Challenged on Capital Market Utilization to Bridge Infrastructure Deficit
Kayode Tokede
The Governor of Ogun state, Mr. Adedapo Abiodun, yesterday challenged the Chartered Institute of Stockbrokers (CIS), among other key stakeholders in the effective utilization of the capital market to bridge infrastructural deficit in Nigeria.
Abiodun, who was speaking at the 27th Annual Conference of the Institute in Abeokuta with theme: “Appraising New Trends in the Capital Market: Localizing of the Benefits,” noted that basic infrastructure was key in engendering socio-economic development as no country could expand its economic base without adequate infrastructure.
He expressed that Nigeria’s capital market serves as a veritable source of funds, which governments can tap into for the execution of various projects, adding that Ogun State is willing to take advantage of this in the near future.
According to him, “The capital market is extremely important to the economy of any country. In the case of Nigeria, they should look at how they can ensure that we have transparency, accountability, and good governance on matters that relate to the oversight and operations of the stock exchange.
“On the other hand, we can find ways to collaborate with the exchange and how the exchange can help in aggregating the required capital to provide the needed infrastructure for this country because what is required to uplift and unlock the economy of any country is infrastructure and if the capital market can take particular interest in that, every other thing will be positively impacted in multiplying effects.
“So, it is important for us to look at how the subnational and even the federal government can collaborate and partner with the capital market to unlock the much-needed infrastructure of Nigeria. You can come to Ogun State by road, rail, or by air, that is because we found the funds to achieve that.”
While emphasizing that the comparative evolution of Nigeria’s capital market and others around the world is necessary, Governor Abiodun charged the conference to deliberate extensively on how the capital market could be a veritable source of capital aggregation that can fund the much-needed infrastructure and enhance the growth of local businesses to provide employment and help in economic diversification.
Abiodun expressed the hope that the conference’s deliberations and discussions would center around the methodological review of trends in the global financial market and the urgent need to domesticate the inherent prospects and opportunities for the purpose of developing the country’s financial market.
The governor, who described the theme of this year’s conference as apt, opined that it would not have come at a better time than now considering the exigencies of critical decisions that is required to turn around and transform current trend in both the capital market and the overall economy.
The state helmsman informed the stock brokers that his administration has further opened up the State for more local and foreign investors by introducing various business friendly policies and the provision of the required infrastructure, adding that the state has increased its ranking on the ease of doing business index.
Abiodun also disclosed that the State’s Agro Cargo Airport being constructed would soon commence commercial operation, just as a Dry Port at Kajola, that would serve over 6,000 manufacturing firms in the state would soon come on stream.
In his goodwill message, the Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, said the CIS 2023 theme is highly and timely relevant, stressing that global capital markets are undergoing significant reforms driven by key trends such as sustainable finance, digital assets, technology, private markets, and globalization.
“These developments underscore the increasing need for investors to stay informed and adaptable,” he said.
He expressed further that the conference is an opportunity for stakeholders to engage in profound discussions, share insights, and strategize on how Nigeria can effectively navigate the domestic and global capital markets.
“This conference is not only a platform for this course, but a call to action. This action is critical to our generation, particularly at this time when the capital market can fill the gap in infrastructure, integrated production and take more of our students out of multi-dimensional poverty. It is a call to explore ways in which we can channel global dynamics to enhance economic growth, promote investment, and foster financial stability in Nigeria,” he said.
He said financial literacy is essential for investors to make an informed decision.
According to him, “By disseminating knowledge and promoting financial literacy, we can empower individuals to enable them to make informed decisions.
“So, education is very important as it is a weapon against exploitation, arming individuals with the discernment to differentiate between legitimate opportunities and deceptive schemes. This commission is mandated to and continue to play a vital role in protecting investors and maintaining fair, orderly, and efficient markets. One of the ways the commission fulfills this mandate is by educating stakeholders in the capital market.”
The CIS President, Mr. Oluwole Adeosun in his welcome address said, “The conference will focus on various facets of the global capital market, including product development, investment strategies, market regulation, and technological innovations that influence the flow of capital across borders.
“The objective is to explore how these global trends can be tailored to address the unique needs and opportunities in the Nigerian capital market. Furthermore, the conference will be a conscious self-assessment forum to examine the state of the Nigerian market in terms of infrastructure, operations, and regulations.”
He added that “the 27th annual stockbrokers conference will provide significant value for state governments in Nigeria, as it explains how the capital market can serve s a tool to enhance industrial development and IGR generation in the states.”
