The Vice President of Nigeria, Prof. Yemi Osinbajo has said the country need a strong capital market to support the development and diversification strategy of the federal government.
Osinbajo stated this while speaking at 2017 Nigerian Debt Capital Markets Conference & Awards organised by FMDQ OTC Securities Exchange in Lagos last Thursday.
The vice president, who spoke through the Director General of the Debt Management Office(DMO), Ms. Patience Oniha, said that accessing the debt capital market was needed to bring the desired economic growth and diversification.
According to him, with the growing population, the private sector participation was also needed to complement government efforts in area of infrastructure development.
The vice president stated that the private sector was efficient in handling project anywhere in the world.
Osinbajo added that the present determination of the federal government on the ease of doing business was to enable more investment flow into the country.
“Ease of doing business makes it easy for business start ups to grow their business,” Osinbajo said.
He added that to enable the private sector succeed in business, the country needs a world-class capital market, which was an important factor that would challenge stakeholders as regards bond issuance.
On the impact of FMDQ to the nation’s debt capital market (DCM), the vice president said that the existence of the over-the-counter (OTC) exchange platform had promoted the domestic fixed income market.
“FMDQ has a pivotal role to play in enabling the authorities access the long-term projects required for the country,” he added.
Meanwhile, the Minister of Finance, Mrs. Kemi Adeosun, said that debt capital market was important because it provides funding for the development of infrastructure in the country.
“DCM will help in deepening the nation’s finance market because we are going to see more direct portfolio investment into the country,” Adeosun said.
She noted that government was restructuring the economy to give nation’s development a leap.
“My message to investors is to start taking position now because Nigeria is growing aggressively economically. We are working very hard to use capital market address to infrastructure deficit in the country. We have seen a lot of opportunities for debt market to bridge the gap of infrastructure,” she stated.
The minister said that Nigeria had all the indices of development and the needed competitive advantage to attract desired investments.
Nigeria’s aspiration is for its DCM to become a world-class, properly functioning DCM by 2020/25.
It provides a transformation framework with workable solutions that will stimulate growth and accelerate the development of the Nigerian DCM.