Delta State Governor, Dr. Emmanuel Uduaghan
By Goddy Egene
Delta State Governor, Dr. Emmanuel Uduaghan, has said capital market regulators need to intensify their efforts in the area of investor education and protection so as to restore confidence in the market.
Uduaghan stated this while speaking with capital market correspondents in Warri during the second Capital Market Committee (CMC) retreat. Although the capital market has been witnessing some level of recovery from the downturn, which began in 2008, many investors are still reluctant to return.
Speaking on the development, the Delta state governor said, given the experience of many investors who suffered losses, it would be difficult for them to return now.
“The way the market is now, it will be difficult for investors to invest. Investments need a lot of confidence. And many people who lost a lot of money would not want that to happen to them again, not for now. I know of some political friends who lost so much money in the market. That is why it is crucial for regulators to intensify their efforts to educate investors and assure them of the safety of their investments,” he said.
Uduaghan, who disclosed that he does not invest in stocks due to his low risk appetite, enthused that “with the cooperation of the media and efforts of the regulators to reposition the market, it will bounce back at some point.”
The governor had, during the CMC retreat, also called on the Central Bank of Nigeria (CBN) to work towards achieving lower interest rates so that borrowers would have access to cheaper funds for the growth of the nation’s economy.
According to him, a lower interest rate would encourage more companies and state governments to borrow for expansion and infrastructure development respectively, saying this would lead to enhancement employment opportunities in public and private sectors of the economy.
Uduaghan explained that even the bonds market many state governments and corporates have been patronising is becoming unattractive due to high interest rate.
“States need to raise funds to fast track infrastructural development while companies also raise funds to expand, produce more goods and create more employment. But the interest rate is not allowing this to happen as expected. Some of us who have raise bonds believe the rates at which the bonds were issued were high,” he said.