Experts, on Tuesday in Lagos challenged the Federal Government to build its industrialization and economic development agenda around the capital market in a bid to urgently lead Nigerians out of poverty.
This was part of the resolutions at 3rd Annual Budget Seminar of the SEC with the theme: “Budgets, Elections and Capital Markets: Risks and Opportunities in 2019.”
In his Lead presentation, Head Economic Research, SEC, Dr. Afolabi Olowookere assured that opportunities exist to equities and sub-national issuances for budget funding.
He however urged the Federal Government to moderate its thirst for domestic borrowing so as to make room for private issuances, just as he enjoined state governments to explore the capital market to fund their projects.
The annual budget, he said, can be funded through “creation of money market-based instruments and trading, commodity trading and derivatives, investing in eligible companies under the Tax Credit Scheme, as well as attracting restructured oil assets to list.
Discussants on the panel opined that Infrastructure development is of optimal importance for the achievement of development of sustainable prosperity, adding that all sectors are dependent on infrastructure to attract investment and ensure the active participation of the private sector.
“Concerning infrastructure, the housing sector, and issuance of mortgages, the Capital market may participate through the securitization. There is great potential for Pension Fund Administrators to invest in the real estate sector” they stated.
Participants suggested increased allocation to the health and education sectors as a necessity for development, because people, and not just infrastructure, build and develop a nation.
In her opening remarks, Acting Director General of the Securities and Exchange Commission (SEC), Ms. Mary Uduk said government budget affects the economy, which in turn affects impact the capital Market.
Stakeholders, both local and foreign, she continued, study the annual national budget and how it affects them, just as investors, which is why capital market stakeholders look at the impact and how the market can aid its implementation.
Continuing, she said: “We are interested in driving and contributing to this economy and that is why we are having this seminar. We believe there are a lot of opportunities for the capital market in this budget. There is need for us to seat down again as a capital market community and find ways of driving the budget”.
Photo caption: From left to right, Prof. Olu Ajakaiye of Africa Centre for Shared Capacity Development Building, Acting Director General Securities and Exchange Commission, Ms Mary Uduk, Chairman House Committee on Capital Market, Hon. Tajudeen Yusuf and Johnson Chukwu of Cowry Assets Management Limited during the Budget Seminar Organised by SEC in lagos, on Tuesday, March 19, 2019
