By Goddy Egene
Operators in the Nigerian capital market are to work more closely together in order to uplift the market in particular and the financial system in general. The President of the Chartered Institute of Stockbrokers (CIS), Mr. Oluwaseyi Abe, disclosed the resolve of more cooperation among market operators while speaking during his investiture ceremony in Lagos last week.
According to him, notwithstanding the challenges of the capital market and economy at large, they at CIS are poised to deploy creative solutions and work in concerted efforts with other stakeholders including the federal government, Central Bank of Nigeria, Securities and Exchange Commission (SEC), Nigerian Stock Exchange, NASD OTC Securities Exchange, FMDQ OTC Securities Exchange and others toward uplifting the capital market in particular and the financial system in general.
He said the importance of the financial system cannot be overemphasized, noting that it is the axle on which the wheel of the economy revolves.
“A robust financial system engenders a stable macro-economy all things being equal and the capital market is one of the most important drivers of economic growth and development. It is a major source of funding for infrastructure with strong socio-economic impact and there is a correlation between a robust capital market and accelerated growth,” Abe said.
The CIS boss stated that the mechanism of the capital market, among other benefits, helps to catalyse industrial growth faster.
“It also helps economies to achieve inclusive growth through greater employment opportunities and attracts foreign portfolio investments, which in turn, could trigger inflows of foreign direct investments, the much needed patient and capital which is critical for growth and development,” he added.
Abe noted that the capital market is having its share of the economic blues and also going through challenging times, citing three major factors as being responsible.
According to him, the factors are: the adverse macro-economic scenario, negative public sentiments which is compounded by a low-level of capital market literacy, and retreat of foreign portfolio investors due to the hitherto adverse fixed foreign exchange regime.
He said the new leadership of CIS has developed some strategic initiatives to place the capital market on a stronger stead, of which education and communication will play a major role.
“Among others, we shall be rebranding our profession to regain the real status in the business community; pursue aggressive membership drive through collaboration and partnership with major educational institutions and professional bodies of which some have already signed memorandum of understanding with us and adopted securities studies in their curriculum,” he said.