Nigerian stockbrokers have suggested ways for the Federal Government to expand the capital market to realise its targeted one $1 trillion dollar economy.
This is according to a statement signed by Dr Josiah Akerewusi, the Registrar/Chief Executive of the Chartered Institute of Stockbrokers (CIS), and Mr Oluropo Dada, President/Chairman of the Council of CIS.
Dada stated that if followed, the suggested tactics would enable the government to accomplish its objective without taking on more debt.
He called on the Federal Government to list Nigerian National Petroleum Company Ltd. And moribund state enterprises on secondary markets to expand the markets, improve the companies’ capacity to turn a profit and create opportunities for the country to regain its position as Africa’s largest economy and reach the one trillion dollar target.
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Additionally, the CIS president stated that policies that would incentivise indigenous and privatised businesses as well as Small and Medium Enterprises (SMEs) to list on the Nigerian capital market would be necessary to achieve the goal.
He said that the informal economy constituted a significant portion of Nigeria’s GDP but remained largely untapped by the capital market.
“Government should conclude the ongoing review of Investment and Securities Act while capital market regulators should review relevant rules and laws in line with global best practices,’’ he said.
As stated by him, this will increase investor trust, provide a beneficial business environment for listed businesses, and remove constraints hampering liquidity access for stockbrokers.
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“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, and Gen Alpha, among others.
“Market operators should also develop products that attract the investment appetite of the technology-savvy youths,” he said.
According to him, the government should resolve foreign exchange difficulties and other inhibitions to the participation of foreign investors in Nigeria.
“This will also enhance Foreign Direct Investment,’’ he added.
