At 61, capital market under siege of policy choices, trust deficit | The Guardian Nigeria News - Nigeria and World News

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Sixty-one years after independence, Nigeria has degenerated to being the poverty capital of the world. Nigeria as a nation has failed to meet the yearnings and aspirations of the people in all areas....

Sixty-one years after independence, Nigeria has degenerated to being the poverty capital of the world. Nigeria as a nation has failed to meet the yearnings and aspirations of the people in all areas of socio political and economic developments.

Furthermore, maladministration, unsustainable debt accumulation, brazen nepotism and inequality have assumed unprecedented dimensions like never before in the country’s 61-year history. This is because many enterprises, which occupy the commanding heights of the economy, still operate outside the market.

This is because the exchange has all it takes to revolutionise the Nigerian economy, considering its internationalisation, processes and infrastructure put in place by the NGX to make the stock market more competitive. “There have been moments of hiccups, the worst of which occurred in 2008 when the market nearly collapsed from the devastating impact of the global meltdown and the internal trust deficit in the market.

He pointed out that the pioneer platform, together with the recent ones, has formed trillions in Naira of capital for the public and the real sectors in Nigeria since 1961 to date, serving well as investment outlets, offering multiple financial products. Adonri pointed out that the Nigerian capital market has played major catalytic roles in the implementation of strategic public policies in Nigeria.

He listed key transformation areas to include listing rules, market categorisation and the second tier window, trading rules, introduction of demutualisation scheme. “In particular, the collapse of the capital market locally and globally in 2007/2008 remains a sore point till today, necessitating the introduction of many reforms by operators and regulators in the market,” he said.

According to him, an institution like the CIS which is primarily responsible for training and certification of individual practitioners and propagation of capital market literacy across the country requires financial support such as grant from both government and market regulators to support the drive.

“The challenges of the market run in tandem with the challenges of the country giving credence to the belief that the capital market is a barometer of the economy of a nation.

 

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