Capital Markets crucial in enhancing economic growth

Philip Clement, ABUJA

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed has emphasized the relevance of the capital market in enhancing the growth and development of Nigeria’s economy.

The Minister stated this at the National Workshop of the Chartered Institute of Stockbrokers.

“I am honoured to be in the midst of securities traders, financial market experts, regulators, economic influencers and other major stakeholders within the Nigerian financial market to strategize on how to achieve twin tasks of accelerating economic development and realizing the dream of a sustained double-digit economic growth for Nigeria.

“You will recall that one of the cardinal focus of the next level agenda of this administration is to address infrastructural deficiencies/gaps and improving the living standard of the average Nigerian through poverty alleviation. In this regard, I was pleased to receive your invitation to participate in this National Workshop which the Chartered Institute of Stockbrokers (CIS), has organized, with the theme: LEVERAGING THE FINANCIAL MARKETS TO ACHIEVE DOUBLE DIGIT ECONOMIC GROWTH FOR NIGERIA.

“There is no doubt that the theme of this Workshop is quite apt and pivotal to the economic agenda of this administration as it is a known fact that no nation of the world attains an optimum infrastructural development without the efficient use of the capital market.

“I would like to appreciate the important role the Nigerian Capital Market has played over the years and will continue to play in the infrastructural financing and capital formation in Nigeria. The Nigerian capital market has over the years provided access to significant long term development capital to the Federal Government and other tiers of government and private sectors.

“In an attempt to achieve consistent economic growth, earlier in the life of this administration, the government developed the Economic Recovery and Growth Plan (ERGP) 2017 – 2020, a medium-term plan designed to foster growth and build a globally competitive economy through diversification of the economy, increased investment in infrastructure, digitalization of the economy, and improvement in the ease of doing business in the country,” She said.

Mrs Ahmed further stated that in 2020, the Federal Government of Nigeria, through the Debt Management Office (DMO) raised N669.12bn from the capital market, through its 3rdSukuk bond offering, with the proceeds used to construct and rehabilitate as many as 44 major roads across the country.

“Also worthy of note is the Offer for Subscription of the Federal Government of Nigeria Savings Bond (FGNSB) by DMO and executed by Stockbrokers. In addition, the Federal Government of Nigeria accessed the International Capital Market (ICM) with Eurobond issuance to finance capital budget deficits.

As our various budgetary allocations and policy pronouncements will attest to, this administration has demonstrated an unprecedented commitment towards bridging the country’s massive infrastructure deficit. Just a few months ago, the government approved the establishment of the Infrastructure Company (INFRACO), which is envisaged to become a world-class infrastructure development vehicle for Nigeria.

The company will serve as the platform for seamless public-private partnership in infrastructural financing in the country, effectively interfacing with institutions such as the Central Bank of Nigeria, the Nigeria Sovereign Investment Authority, pension fund and other financiers home and abroad.

“On our part, the Federal Government will continue to support the Capital Market by providing the enabling environment, and by making the necessary legal enactments to assist you in carrying out you functions efficiently,” she further stated