The President, Chartered Institute of Stock Brokers (CIS), Adedapo Adekoje yesterday has said that only less than five per cent of the Nigerian population have investments on the nation’s capital market.
Speaking at the Securities and Exchange Commission (SEC) Journalists’ Academy 2018 in Uyo, the Akwa Ibom State, Adekoje regretted that only one per cent of registered companies in Nigeria are listed on the Exchange.
He said despite the full restoration of the stock market after the 2008 global meltdown, and continuous involvement of reputable foreign investors, the local investors are still bugged down by fear and low levels of confidence and as such have not been participating as much as they should.
Speaking further he said “If the percentage of Nigerians investing in the market can be increased to a just 20 per cent, for a start, in the next five years, there will be a massive growth in the capital market and by extension, the national economy.
He, however, said that major companies operating in the economy must be wooed and encouraged to list on the capital market, as that would greatly enhance the benefits derived by Nigerians on their patronage of these companies.
Noting that awareness about the Nigerian capital market was still low, Adekoje pointed out that Nigeria still have a long way to go even as he called for focus on investor education.
He stated that market itself must be cleared of all inherent contradictions in regulatory policy and allowed to operate strictly by the dictates of the law. For instance, he said, there are some market platforms today which permit non CIS’ chartered stockbrokers of trade, and this not healthy for the market.
Adekoje who described investment in the capital market as highly risky, said it is the easiest and best way to grow rich.
He insisted that Nigeria is presently bearing burden of infrastructure deficit, which the government cannot tackle alone using funds from crude oil, but added that long term loan from the nation’s capital market can bail country out
According to him “Nigeria has a huge infrastructure deficit, which the government alone cannot shoulder. our slow pace of progress in this area is largely defined by the relatively low priority and attention given to the capital market by the government despite the massive role the market played in indigenization, banking recapitalization and most recently, in providing the needed liquidity to get the country out of recession.
He however said that Nigeria as the globally acknowledged “giant of Africa” has huge responsibilities to its people and African continent, adding that our continuous appellation as a less developed country” is both an aberration and embarrassment to Nigerian and Africans alike.
