{"id":46673,"date":"2021-02-09T23:10:12","date_gmt":"2021-02-09T22:10:12","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=46673"},"modified":"2021-02-09T23:10:12","modified_gmt":"2021-02-09T22:10:12","slug":"stakeholders-identify-partway-to-capital-market-growth-in-2021","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/stakeholders-identify-partway-to-capital-market-growth-in-2021\/","title":{"rendered":"Stakeholders Identify Partway To Capital Market Growth In 2021"},"content":{"rendered":"

Participants at this year\u2019s edition of annual economic review of the\u00a0Chartered Institute of Stockbrokers (CIS) unanimously projected that outlook for the Nigerian economy remained positive but identified certain factors that need to be addressed for optimal economic performance.<\/p>\n

In the webinar entitled\u00a0\u201cThe Nigerian Economic Review for 2020 and Outlook for 2021 With Recommendations\u201d, the Institute identified the major factors that will propel Nigeria\u2019s economic \u00a0growth despite the negative impacts of COVID-19 on businesses globally.<\/p>\n

Presenting the Institute\u2019s position paper, the Chairman, Research and Technical Committee, Mr Akeem Oyewale explained that\u00a0economic outlook\u00a0for 2021 was predicated on the timing and availability of vaccines to put covid-19 under control.<\/p>\n

\u201cPrivate sector activity\u00a0needs to\u00a0be\u00a0significantly\u00a0stimulated, while the Micro Small and Medium Scale business class should have greater access to\u00a0viable\u00a0long term\u00a0capital.\u00a0These will be\u00a0effectively accomplished if the\u00a0equity\u00a0capital market is supported,\u00a0strengthened\u00a0and stabilized\u00a0with continuous liquidity.\u00a0Based on the universally acknowledged principle\u00a0that the money (short term) and capital (long term) markets complement each other in the economic development process, we wish to\u00a0call on the Central Bank of Nigeria (CBN) to extend the following structural \/ liquidity support to the\u00a0equity arm of the Nigerian capital market:<\/p>\n

\u201c<\/b>Creation of an intervention fund for securities dealing firms, to avail them the necessary liquidity to maintain consistent position on quoted securities, thus stabilizing the market.<\/p>\n

Permit\u00a0banks\u2019 stocks to qualify for investment of margin lending facilities, under strict regulatory controls, because of its significant impact on market turnover.\u00a0In view of the gradual return of local investors,\u00a0we enjoin the Central Bank of Nigeria to be temperate in dealing with interest rate, liquidity and yield adjustments\u00a0in its monetary policy.<\/p>\n

\u00a0Historically, local pension funds\u00a0served as the critical catalyst for stabilizing and propelling growth in the advanced economies of the world.\u00a0 We therefore urge the\u00a0Pension Commission (PenCom)\u00a0and Nigeria\u2019s\u00a0Pension Fund\u00a0Administrators (PFAs) tosignificantly increase\u00a0the percentage of pension funds invested in the\u00a0Nigerian\u00a0equity market. Investment of\u00a0Nigerian\u00a0pension funds in\u00a0local\u00a0equities remain less than 10% of pension funds under management, but we strongly believe that, given the current needs and safety structures \u00a0of the\u00a0Nmarket, the 25%statutory cap can\u00a0be\u00a0safely\u00a0made\u00a0a minimum figure\u00a0for the PFAs.<\/p>

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Advertisement<\/div>\r\n\t\t\t\t\t\t\t<\/a>\r\n \r\n\t\t\t\t\t\t\t<\/div>\n

\u201cThe impressive equity index performance aside, the massive 446 percent oversubscription of the FGN\u2019s third Sukuk Bond, issued to construct and rehabilitate as many as 44 major roads across the country, has further confirmed the strong absorptive capacity of the Nigerian capital market..\u201d, according to the paper.<\/p>\n

In his contribution, a Professor of Capital Market Studies, Nasarawa State University and President, Association of Capital Market Academics of Nigeria, Prof. Uche Uwaleke said the government could finance the budget deficit of N5.2 Trillion through floating of Federal Government Bond, Securitization of debts and privatization of moribund companies.<\/p>\n

Speaking\u00a0on; \u201cCapital Market Pathways To Financing The FGN Budget Deficits\u201d, Uwaleke stated that government should \u201cissue\u00a0infrastructure\/revenue bonds\/project-tied bonds to ensure that the proceeds are ring-fenced as opposed to the current resort to general obligations bonds which proceeds often go into recurrent spending.\u201d<\/p>\n

An economic consultant, Dr Biodun Adedipe of B. Adedipe and Associates who spoke on \u201cGlobal Economic Dynamics in 2021\u201d, explained that success of COVID-19 vaccine in the United States and China would have positive impacts on Nigeria but strongly advocated for investment in Agriculture, ICT and manufacturing as they have potentials to revive the economy. Adedipe added that Government should make credit available, accessible and attractive for investment.<\/p>\n

Another economic consultant, Mrs Kemi Akinde, urged the government to align fiscal and monetary policies and ensure consistency of both policies. She also advised The Nigerian Stock Exchange to commence trading in derivatives without further delay to enable investors enjoy the opportunities for risk management. Akinde stated that the Securities and Exchange Commission ( SEC) should fully automate its fillings \u00a0for efficient service delivery.<\/p>\n

\u00a0Earlier in his welcome address, the Institute\u2019s\u00a0The President\/Chairman of the Council, Mr. OlatundeAmolegbe, said \u00a0the Council had approved a recommendation of the Research & Technical Committee, that the Institute carry out a thorough review of the Nigerian economy every year with a view to helping government, policymakers and industry regulators in the country craft effective strategies to accelerate GDP growth in the country.<\/p>\n","protected":false},"excerpt":{"rendered":"

Participants at this year\u2019s edition of annual economic review of the\u00a0Chartered Institute of Stockbrokers (CIS) unanimously projected that outlook for the Nigerian economy remained positive but identified certain factors that need to be addressed for optimal economic performance.<\/p>\n","protected":false},"author":6,"featured_media":31972,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[17],"tags":[8175,5613,1538],"coauthors":[2391],"class_list":["post-46673","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-news","tag-annual-economic-review","tag-chartered-institute-of-stockbrokers","tag-economic-recovery-plan"],"yoast_head":"\nStakeholders Identify Partway To Capital Market Growth In 2021 - National Wire<\/title>\n<meta name=\"description\" content=\"Stockbrokers (CIS) unanimously projected that outlook for the Nigerian economy remained positive but identified certain factors that need to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/stakeholders-identify-partway-to-capital-market-growth-in-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stakeholders Identify Partway To Capital Market Growth In 2021 - 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