Mallam Sanusi Lamido Sanusi
By Obinna Chima
Governor, Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi has said that the Nigerian will not recover fully without a vibrant capital market.
A statement at the weekend, said Sanusi made this remark during a courtesy visit to his Lagos office by members of the Charted Institute of Stockbrokers (CIS).
According to him, without a very strong and deep capital market the economy will continue to depend on banks for investment funds.
He argued that commercial banks did not have what it takes to provide the kind of long-term funds required to grow the economy, even as he assured that the capital market would bounce back next year.
Sanusi said every downturn of the capital market took an average of three years to recover.
“I have always said that the market will recover in 2013. We need to look at the concentration of the market. A situation where the banking sector remains the dominant player in terms of capitalisation is not ideal,” he said.
The governor advised members of the CIS to use the occasion of their forthcoming National Workshop as an avenue to discuss issues that would facilitate the growth of the capital market.
Commenting on the forbearance for capital market operators, who obtained margin loans from banks, the CBN governor said: “Our position at the CBN is that everybody who have lost money through margin loans and trading have to bear their losses.”
“We are of the opinion that capital market operators, the banks and Asset Management Corporation (AMCON) should all take a portion of the losses so that the market can move forward,” he said.
Earlier in his address, the President and Chairman of the Governing Council of CIS, Mr. Ariyo Olushekun, appreciated Sanusi for his effort to stabilise and grow the Nigerian economy.
“We the capital market operators appreciate your enlightened contributions to the discourse on capital market recovery consequent upon the crisis which commenced a few years ago. Your support to the call for grant of forbearance to capital market operators as a way of resolving debt overhang in the market is also worthy of note. We sincerely appreciate your focused, courageous and determined leadership, and wish you continued success in your endeavours,” Oleshekun said.