The President of the Chartered Institute of Stockbrokers (CIS), Mr. Oluseyi Abe wednesday said the nation’s capital market can provide the needed capital that can take the country out of the current economic recession.
Speaking at his investiture ceremony in Lagos, Abe said the capital market has the potential to fund economic activities, noting that what is needed is the right policies and products that attract investors who can provide the funds.
According to him, with a vibrant capital market, the federal government does not need to sell assets or borrow externally to fund the budget deficit.
He said although the government is yet to bring out the names of assets that would sold, he noted that caution should be applied.
“I believe there is nothing wrong if the government plans to sell assets that are not performing optimally. But caution should be applied in taking this decision,” Abe said.
However, the CIS boss noted that market still has the potential to provide the funding needs of government at all levels.
“The capital market can provide funds for the government and corporates. It has been doing so in the past and I believe the market has the potential to provide what funding needs of government and corporate bodies. What we need is products that will attract the capital from investors both domestically and foreign,” Abe said.
He emphasised that the capital market plays a vital role of mobilising funds from the surplus economic unit to the deficit for development.
He said the CIS will collaborate with relevant government agencies to deepen the market it more attractive, noting that advocacy will be top on the agenda of the institute.
He added that he will work with stakeholders in the capital and stockbroking community to ensure that stockbrokers take their right place in the economic development and growth of the country.
Abe explained that stockbrokers, who are also trained as investment advisers will be encouraged to work with government at various levels as consultants and advisers as part of efforts to look for solutions that will take the nation from the current challenging times.
In his goodwill message, the Director General of the Securities and Exchange (SEC), Mounir Gwarzo urged CIS members to maintain the high level of compliance with the laws and rules guiding capital market operations.