From Bode Durojaiye, Oyo.
Life National Vice-President of the Nigerian Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Chief Adebowale Omotoso, has said that improvement in earnings and a broader capital base for enterprises remain indispensable if appropriate economic growth and a high level of employment are to be regained in the economy.
Omotoso, who made this observation on Tuesday in Oyo town at a business forum, stated that the Stock Exchange, through its operations, provides avenues for governments and corporate entities to effect optimal financing and broaden their capital base.
Such sound financial services, according to him, will no doubt serve as a edge against the vagaries of business and economic cycles, which have in recent times shaken the basic fabric of our national socio-economic system.
“It is worth repeating that, Nigeria’s vision of long term economic development based on a virile real sector requires huge capital outlay for its realisation. It also calls for a reorientation of existing approach to projects financing. We must, therefore, look beyond the commercial banks and donor agencies to meet our financial needs, especially for long-term purposes. Our financing option is in the stock market, which must be supported to successfully discharge its crucial role in financial services delivery.”
While enumerating issues that require immediate official intervention to include the need to maintain policy consistency, accelerate the implementation of privatisation programme, and get the oil and gas companies and telecommunication companies to list on the Exchange for
broader and deeper stock market that approximates the economy, the frontline Industrialist noted that these are important issues that impacts on the performance of the market, because government policies shape markets, “thus requiring that government acts now on these issues”.
“The strategy for achieving the growth objectives of the stock
market also includes a downward review of the cost of transactions and review of listing procedures to meet the new needs of the market and the larger economy, especially with regard to the utilisation of ADRs/GDRs by Nigerian companies and the attainment of cross-border listing for some of these companies.”
Omotoso, however, stressed that the development of stock markets requires not just establishing the right legal and regulatory framework, but it is associated with the building of an enterprising and flourishing private sector, as well as political stability.
According to him: “It also demands effective monetary and fiscal policy management and indeed a stable macro-economic environment”.
