Group Managing Director of
The Nigerian capital market has witnessed significant recovering in past two years. But what is your assessment of investor's confidence currently in the market?
There is no doubt that investors' confidence fell considerably during the financial crisis, evidenced by a virtual wiping out of the retail segment of the market. This explains, to a large extent why a handful of institutional investors, mostly foreign dominated the market for a long time. However, confidence has returned to the market as can be seen from the impressive performance of the market in recent years. The sweeping sanitisation of the financial services sector and the improved reporting standards and corporate governance has also helped in this regard. This is also evidenced in the increased participation of the domestic investors in the market as foreign portfolio investors reduce their holdings.
From your above analysis, what measure do you think can be adopted to further enhance investor confidence?
I believe that a lot of work is being done in this regard. As stated earlier, the improved transparency in terms of reporting and the stronger regulatory push for proper corporate governance is achieving good results. However, further measures to enhance confidence will be the active display of zero tolerance for market infractions by market operators. In addition, the regulators must ensure speedy delivery of settlement/judgement to investors in cases of disputes with capital market operators. I strongly believe that speedy implementation of decisions by regulators and government would also help boost confidence of investors. For example, the quick implementation of the removal of stamp duties and VAT payment on secondary market transactions could attract stronger interest in the market. Recently the
The rebased figures arguably represent an improvement in the accuracy of the
Talking about attracting foreign investors into our capital market, what do you thing should be put in place to attract foreign investors into our market?
As you may know, our financial market is already very attractive to the foreign investors considering the yield that the market offers. Although the equity market is currently experiencing a lull, our stocks are trading at very attractive valuation. However, the structural deficit in terms of lack of infrastructure and some policies to aid production/manufacturing, the country's risk profile appear to be high in attracting long term capital through direct investment. This also limits the ability to attract patient capital that can play in the capital market for a long time. While the government is doing a good job of improving infrastructure deficit in the country, there is need to increase the speed to meet up with investors' expectation within the shortest possible time.
Last week, the Chartered Institute of Stockbrokers (CIS) held its third national workshop in
The annual national workshop was borne out of the need to create platform for thought leadership on critical issues in the national economy as it concerns the capital market. It is also an engagement platform for members who are market players, and regulators and the policy makers- the government. It is part of the larger efforts to use the capital market as a catalyst for growth and of course development.
But how would you appraise the workshop in the last three years?
In the first place, it is important to note that the resolutions made at the various workshops in the past are subject to a lot of factors that are external to the institute. However, as a professional body in the Nigerian capital market, our conferences and workshops are premised on engagement with the other critical stakeholders especially the public sector and policy makers on major issues that affect primarily the business of the institute in particular the Nigerian economy in general. In this regard, resolutions of our conferences and workshops in the past are usually presented to the government and related stakeholders. In addition, several meeting are held with the relevant authorities to ensure that resolutions passed at the previous workshops are implemented. Notwithstanding, CIS has impacted the economy in a number of ways. It played major role in the passage of
The 2014 workshop was seen as unique. Why is it so and can you shed more light on this year's theme?
This year's workshop is unique in the sense that it focuses on trade, investment, power and agriculture sectors. The uniqueness of this year's workshop is premised on the pivotal role that these sectors would play in economic growth and development of any nation in the near future. Given the coincidence of this with the time when the economy's GDP rebasing exposed it as the largest in
As one of the active capital market operators, what messages are your people sending to the government in order to uplift the market?
Thanks for this question. As a capital market operator, we are constantly working with the government through our regulators and our trade groups to uplift the market through lower transaction fees, increased transparency through stronger corporate governance, adoption of global standard market structures and improving access to liquidity for market operators. We have contributed immensely towards developing a capital market master plan, working with the
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