Capital Market experts have identified problems of the nation’s capital market, saying the market still suffers from investor apathy. Speaking at the 2019 Capital Market Summit hosted by the Association of Securities Dealing Houses of Nigeria, the Chairman and Chief Executive Officer, Susman and Associates, Dr Shamsuddeen Usman, explained that unlike other markets that had fully recovered from the global financial crises of 2007-2008, Nigeria’s capital market had continued to suffer from investor apathy and other sundry issues.
Usman, who is a two-term Minister of Finance and National Planning, advocated a complete review of the market in line with the current realities in the global financial market in order to re-address the issue of investor confidence and leverage the market for financial inclusion. In his paper titled “Driving financial inclusion through the capital market, he advocated a one-stop financial centre in line with some foreign markets.
Usman said, “In China, interbank bond markets offer special financial bonds for the purpose of increasing the size of loans to small and medium enterprises. Capital Market Business Hubs are established in small cities to expand the outreach of capital market institutions.” He stated that he instituted a project called Voice and Voting Power, in which major stakeholders were involved with the aim of finding lasting solutions to the challenges facing the capital market.
Usman identified some of VPP’s recommendations as the development of the commodities exchange ecosystem, encouraging more trading through tax incentives, deepening of Islamic finance and other non-interest products, development of bond market, reduction of the average costs of issuing equity and debt securities, relaxation of complex legal, regulatory and listing requirements and greater use of simple and innovative technology among others. The Chairman, ASHON, Chief Patrick Ezeagu, stated that the association had aligned with the policy thrust of the government that every citizen should participate in the financial industry and enjoy its benefits.
He said, “The association has been engaging in various advocacy initiatives in line with our objectives. We recognise that the world is fast undergoing some evolution, especially in the way of doing things, which is being propelled by the fast pace of technological innovations. Punch
Pix: Nigeria capital market
