By Taofik Salako, Deputy Group Business Editor
The government has been advised to use the capital market for accelerated development by directing borrowed funds to specific projects and infrastructure that could stimulate the production base of the economy.
Former Anambra State Governor, Mr Peter Obi said the government’s borrowings should be targeted at development of the productive base of the economy, rather than supporting or supplementing consumptive tendency.
Speaking on “The expected role of capital market in a developing economy “ at a webinar organised by the Association of Securities Houses of Nigeria (ASHON), Obi noted that many countries that made proper use of borrowed funds have grown their economies significantly.
He advocated for a well-articulated fiscal and monetary policy to drive activities in the capital market.
Managing Director, Planet Capital, Mr Chidi Agbapu, called for self discovery and emphasised the interplay of actions, thoughts and feelings in the making of one’s attitude.
He pointed out that many people created artificial barriers for themselves due to lack of will to actualise their dreams.
Speaking on “ The place of the capital market in the Changing Socio-Economic Order,” Chief Consultant, Biodun Adedipe and Associates, Dr Biodun Adedipe called for a more constructive engagement with the market by providing a bouquet of incentives that encourages innovations and development of the capital market.
He also noted the need for the government to make use of the capital market to fund its major infrastructural projects.
Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Chief Onyenwechukwu Ezeagu, urged stockbroking firms to align their business models with the newly demutualised Nigerian Stock Exchange to maximise the anticipated opportunities and minimise the risks.
Following its approval to convert into public company by the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) at the weekend, the NSE will henceforth operate as a profit making organisation under the Nigerian Exchange Group Plc(NGX Group ) with three subsidiaries: Nigerian Exchange Limited (NGX Limited), NGX Regulation Limited ( NGX REGCO) and NGX Real Estate Limited (NGX RELCO).
Addressing securities dealers at the webinar themed “ The future of securities dealing business in Nigeria post-demutualisation of NSE “ Ezeagu urged ASHON’s members to align their business models with the new market structure.
“The changes that this new orientation will bring in the business model of the Exchange may impact our own operating models as securities dealers. However we anticipate that there must be responsibilities and risks attached to every relationship, some of these risks may crystalise, some are not within our radar, we know that researchers usually expect some serendipity results and make provisions for it just like we try to do in this matter,” Ezeagu said.
According to him, the governing council of the ASHON has been deliberating on proactive measures to take in order to realign business model and ensure the sustainability of members’ businesses in the changes that may follow the demutualisation.
He noted that it was such proactive thinking that led the council to engage with other exchanges or platforms with a view to creating avenues for members to diversify and sustain their businesses and enhance their earnings base. Such platforms include the Lagos Commodities and Futures Exchange (LCFE), the NASD, and FMDQ.
“We were involved in the demutualisation process with the council and management of the Nigerian Stock Exchange from inception and participating in the various decision inputs and Committee memberships. We engaged vigorously and achieved our aim of protecting the interest of our members. Our expectations on the completion of the demutualization process are that we shall have shares credited to our accounts as shareholders and the demutualized Nigerian Stock Exchange will become an aggressive profit oriented entity, “ Ezeagu said.
Leave a Reply