Stakeholders advise Buhari to improve a lot of spheres of Nigeria and a capital market reform is one of the structural aims of experts.
Capital market operators urge the incoming government, to address the infrastructural gaps in the economy by using capital market instruments.
One of the operators said: “The capital market can finance the entire infrastructural gaps if the government can deploy fiscal incentives to deepen the market by encouraging the companies in the telecoms, power and aviation and oil and gas sectors of the economy to get listed on the securities market”.
Albert Okumagba, President Chartered Institute of Stockbrokers, CIS stated: “The core capital market operators should work with the regulators to come with pragmatic timetable which will be endorsed by the Federal Government for the commencement of viable commodity exchanges which are either privately owned or government owned. The commodity market should be developed in such a way to provide underlying instruments on which other structured products in the financial market can be developed to increase the number of tradable instruments in the capital market. For instance, futures, options and other derivative instrument on the underlying assets available in the commodity market.”
He further noted that promotion of national savings is better achieved through comprehensive review of the rules and regulations guiding the Collective Investment Scheme, CIS.
“In the same vein, there is a need to amend all clauses that are affecting the operations of the Pension Commission, to ensure its developmental impact on activities in the capital market,” he added.
Emeka Madubuike, Chairman, Association of Stockbroking Houses of Nigeria said: “Incentives should be given to listed companies and prospective companies to be listed so as to have some advantage over unlisted companies. We propose some tax incentives for listed companies and those that are in the process of getting listed.Policies that would promote marketability of agricultural products should be enunciated and implemented to boost operations of the commodities exchanges. Also governments at the highest level must continue to make positive statements and assurances that will engender investors’ confidence.”
In his own comment, Victor Ogiemwonyi, Chairman, Association of Issuing Houses of Nigeria explained: “Government borrowing rate in the capital market should drop to avoid crowding out of funds in the capital market so as to make the market attractive for private sector to raise funds. We are ready to support the Federal Government in advisory capacity at any time the need arises on how the capital market can be fully utilized to drive economic growth and development in Nigeria.”
He further stated that the Federal Government should accord regulatory support to the two existing Over-the Counter, OTC Markets- National Association of Securities Dealers (NASD) and FMDQ platform to enhance expansion of their operations in the financial market.
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