Alliance Group seek repositioning of capital market

Pledges to support viable commodity exchange

The Capital Market Alliance Group under the aegis of the Chartered Institute of Stockbrokers (CIS), Association of Stockbroking Houses of Nigeria (ASHON) and Association of Issuing Houses of Nigeria (AIHN) yesterday identified strategic issues that the Federal Government must put in place as a matter of urgency to reposition the Nigerian capital market for enhanced liquidity and capital mobilization.

The group, who pledged to work with the federal government in ensuring a viable commodity exchanges, also  urged the government to leverage on medium and long term fund through  the capital market  to finance the  country’s infrastructural deficit   despite the downward adjustment of the 2015 National budget.

Speaking at an interactive session with the Capital Market correspondents on the state of the market yesterday, the President, CIS, albert Okumagba explained that there were bountiful opportunities for long term capital in the Nigerian capital Market but certain things must be put in place to harness the opportunities.

“ The capital market can finance the entire infrastructural gaps if the government can deploy fiscal incentives to deepen the market by encouraging the companies in the telecom, power,aviation,and oil and gas sectors of the economy to get listed on the securities market,” he said.

Okumagba noted that the core capital market operators was prepared to work with the federal government to ensure full utilization of the capital market. He also advocated for development of the Commodity market to increase the number of tradable securities including futures and options derivative instruments on the underlying assets in the commodity market.

Corroborating Okumagba, the Chairman, ASHON, Emeka Madubuike said that should be given to listed companies and prospective companies to be listed so as to have some advantage over unlisted companies.”

We propose some tax incentives for listed companies and those that are in the process of getting listed Policies that would promote marketability of agricultural products should be enunciated and implemented to boost operations of the commodities exchanges. Governments at the highest level must continue to make positive statements and assurances that will engender investors’ confidence,” Madubuike said.

The Chairman, AIHN, Mr Victor Ogiemwonyi spoke extensively on the current management of interest rate and exchange rate by the Central Bank of Nigeria (CBN) and commended the apex bank so far. But he urged the CBN to strive towards reduction in the Monetary policy rate (MPR) to stimulate activities in the bond market.

“Government borrowing rate in the capital Market should drop to avoid crowding out of funds in the Capital Market so as to make the market attractive for private sector to raise funds.

The federal Government should re-visit privatization in order to allow for listing of government enterprises that are operating sub-optimally.

All the government needs to do is to set up a capital market committee to work with the Bureau of Government Enterprises (BPE) to drive the process,” said Ogiemwonyi.