The Director General, SEC, Ms. Arunma Oteh disclosed this , saying capital market serves as a platform for mobilizing long term funds for various project.
The Director General, who was represented by Director, Securities & Investment Services of the commission, Mary Uduk, at the 17thStockbrokers Annual Conference held in Lagos, said one of the standards of measuring a nation’s development is the level of infrastructure provided for its citizens.
According to her, “Government across the world faces the challenges of providing adequate and affordable infrastructure. One of the major constraints is the lack of funds to adequately address infrastructure needs.”
She noted that there are various financing models available for nations to use in funding infrastructure needs. She mentioned some of them to include: Traditional financing models, budgetary provisions etc.
Meanwhile, the Chartered Institute of Stockbrokers (CIS) has urged the Federal Government to make use of the Nigerian capital market to fund the infrastructure requirement of the country.
President, CIS, Alhaji Olushekun Ariyo, who gave the advice, during the 17th Annual Conference, said the allocation from national budget is no longer enough to provide the needed infrastructure that would boost productivity and general welfare of the people.
He also urged the newly inducted stockbrokers to ensure they maintain professionalism in the discharge of their services to the investing public. “ You should make use of the knowledge and experiences gathered during the period of your study to deliver quality service and shun any malpractices capable of destroying your integrity” he said. In his own contribution at the conference, Chibundu Edozie , Group Deputy Managing Director of BGL Plc, said, N464 trillion is needed for infrastructure in the next five years, and we don’t have the capacity to fund the infrastructure need.
He stated that N15 trillion deposits is in the banks and about N3.7 trillion in pension fund, but all these amount is not sufficient to provide the needed fund for infrastructure. He harps on the low level of saving in the country, saying “Savings is very low in Nigeria. We don’t have a reasonable saving culture, so the alternative is to seek capital market for additional funding.
Mr. Tola Mobolurin, Chairman, Capital Bancorp Plc, said, “We need private sector involvement in sectoral reforms in order to have overall effect on the entire economy. There should be a holistic regulatory requirements if Nigeria must be among top economies.”
He further warned that the people should not be stampeded into Pubic Private Partnership (PPP) especially in some infrastructural projects, adding “ The build and transfer system of the PPP has not benefitted the operators and should be carefully reviewed.”
Mobolurin, advised that the government to bring down the cost of public expenditure, saying, “We need to bring down the cost of public expenditure. Government cannot fund all the projects with budgetary allocation. So the Nigerian capital market instrument should be used to fund some of the needed infrastructure in the country.”