To achieve stock market stability, investors have urged the government to promote national savings culture through incentives that would ensure improved patronage in the retail segment and increase investment in the market.
Despite investment opportunities in the Nigerian equities market, given the relatively low prices of stocks, 2020 saw a total foreign outflow of N481.93 billion against an inflow of N247.27 billion while in the month of February 2021, foreign outflow of N39 billion from the equities market was recorded compared to an inflow of N23 billion.
They argued that market stability could only be achieved through improved long-term saving, noting that increased savings would also, accelerate development and bolster the economy. Furthermore, he added that it is desirable for the government to seek how to moderate the influence of foreign portfolio investors in the Nigerian capital market by boosting increased domestic participation in the market.The Chairman, Integrated Supreme Shareholders Association of Nigeria, Owolabi Peter argued that there was also a need for market participant to explore various mechanisms and mobilise savings in order to boost liquidity in the market.
He argued that Nigerian workers should embrace the culture of savings in order to provide more viable exit plans in the face of voluntary or compulsory disengagement.