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Govt, stockbrokers to join hands for economic growth

Govt, stockbrokers to join hands for economic growth

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The Federal Government and stockbrokers have reiterated their commitment to work towards the development of the economy.

At an interactive session in Lagos, key members of the government’s Economic Management Team and capital market operators agreed on the importance of the capital market in national economic growth and development.

Representative of the Vice President and Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah said the government was willing to partner the market operators to achieve growth.

Outlining the government’s plans and achievements, Enelamah said the government has been making efforts to ensure sustainable economic growth.

According to him, programmes, such as Ease of Doing Business in Nigeria, industrial policy and competitiveness, special economic zones, targeted sector policy reforms and trade agreements, among others, are aimed at providing enabling environment for sustained economic development.

He urged stockbrokers to continue to make input to government policies as well as specific requirements for the market, assuring that government will always consider such input.

Nigeria Investment Promotion Commission (NIPC) Chief Executive Officer, Ms Yewande Sadiku outlined efforts being made by the Commission to attract investors across the globe into Nigeria through an array of incentives.

She advised stockbrokers to visit the NIPC website regularly and make input on how to attract investors.

The interactive session generated discussions on how taxation is impacting negatively on stockbrokers’operations and the way forward.

At the event organised by the Chartered Institute of Stockbrokers (CIS), stockbrokers urged the government to further take advantage of investment opportunities in the capital market to mobilise funds to execute development projects.

Besides, they identified communication gap between the government and the market as one of the reasons for the government’s inability to put the market on the front burner of Nigeria’s economic revival strategy, urging the government to place the market on the same pedestal with money market without delay.

Chartered Institute of Stockbrokers (CIS) President, Mr.Adedapo Adekoje said the government should use the market to fund this year’s  fiscal budget with ease.

According to him, the government’s investment through savings bond and similar asset classes could not fully finance infrastructural deficit, hence, the urgent need to float revenue bonds in addition to general purpose bonds.

He reiterated the need to re-constitute the board of the Securities and Exchange Commission (SEC) and accord the Commission a status of independence like the Central Bank of Nigeria (CBN) in line with the global best practices.

In his presentation on “Strategies to achieve double-digit growth for Nigeria: The capital market option”, Mr. Mike Itegboje noted that developed economies leveraged  the market for growth and development.

He urged the government to borrow a leaf from countries, such as the United States and China, which  place premium on the use of their  markets for development.

“The U.S. capital markets are the bedrock of the nation’s economy and the deepest and most liquid in the world. That depth and efficiency is evidenced by the size of the gross domestic product, the strength of the US commercial sector, the level of home ownership, and the vast national infrastructure across the fifty states in comparison to the rest of the world”, Itegboje, a former president of CIS, said.

SEC Acting Direcctor-General Ms Mary Uduk called for privatisation of moribund government enterprises through the market.

According to her, such move this would not only ensure revival of the companies, but also deepen the market after listing.

Uduk said the essence of the Commission’s Ten-Year Development Plan was to make market competitive.


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