Broad­en­ing cap­i­tal mar­ket reach

Build­ing the blocks of a large num­ber of in­formed par­tic­i­pants re­quires ef­fec­tive teach­ing for high rate of fi­nan­cial mar­ket knowl­edge Academia will need to col­lab­o­rate with other in­sti­tutes within the space to de­velop the cap­i­tal mar­ket

Business a.m. - - FRONT PAGE - Charles Abuede

STAKE­HOLD­ERS, SEEK­ING TO BROADEN the reach of the Nigerian cap­i­tal mar­ket and drive its growth, are look­ing to the academia to build aca­demic and strate­gic long-last­ing re­la­tion­ships to help achieve these...

STAKEHOLD ERS, SEEK­ING TO BROADEN the reach of the Nigerian cap­i­tal mar­ket and drive its growth, are look­ing to the academia to build aca­demic and strate­gic long-last­ing re­la­tion­ships to help achieve these goals.

They see col­lab­o­ra­tion and re­la­tion­ships be­tween the mar­ket and academia as a way to mod­ern­ize in­no­va­tions aimed at driv­ing growth in the Nigerian cap­i­tal mar­ket as such col­lab­o­ra­tive ef­fort can en­cour­age fi­nan­cial lit­er­acy and bridge the gaps in in­vest­ment in the cap­i­tal mar­ket.

This propo­si­tion was made at a vir­tual sym­po­sium or­gan­ised by the Abuja branch of the Nigerian Cap­i­tal Mar­ket In­sti­tute (NCMI), a train­ing arm of the Se­cu­ri­ties and Ex­change Com­mis­sion (SEC) for the ed­u­ca­tion of the cap­i­tal mar­ket com­mu­nity in con­junc­tion with in­dus­try lead­ers and other rel­e­vant stake­hold­ers.

The event, which was themed, “Role of Academia in the De­vel­op­ment of the Cap­i­tal Mar­ket,” and was mon­i­tored by Busi­ness A.M., was aimed at bridg­ing the knowl­edge gap be­tween cap­i­tal mar­ket and the academia and equip­ping the in­sti­tu­tions with the req­ui­site knowl­edge and skills for re­search and pub­li­ca­tion which are the knowl­edge-based na­ture of the cap­i­tal mar­ket.

Lamido Yuguda, the di­rec­tor-gen­eral of SEC and chair­man of the NCMI board, in his key­note re­mark at the ex­pressed op­ti­mism while pledg­ing that the cap­i­tal mar­ket reg­u­la­tor will en­cour­age fi­nan­cial lit­er­acy and bridge gaps in in­vest­ment in the cap­i­tal mar­ket.

“I salute the or­gan­is­ers and the re­source­ful­ness of the As­so­ci­a­tion of Cap­i­tal Mar­ket Aca­demics of Nige­ria (ACMAN) in the de­vel­op­ment of the cap­i­tal mar­ket. The sym­po­sium theme is timely as it man­dates on in­vestors ed­u­ca­tion. How­ever, SEC is com­mit­ted to en­cour­ag­ing fi­nan­cial lit­er­acy and bridg­ing gaps in the in­vest­ment in the cap­i­tal mar­ket. As reg­u­la­tors, we shall con­tinue to sup­port the im­pacts that are aimed at the de­vel­op­ment of the mar­ket,” he stated.

Uche Uwaleke, a pro­fes­sor of cap­i­tal mar­ket and pres­i­dent of the cap­i­tal mar­ket aca­demics of Nige­ria, who also dou­bled as the lead speaker at the event among seven other dis­tin­guished dis­cus­sants, said that there is need for strong reg­u­la­tions, which are aimed at pro­tect­ing in­vestors and also in­tro­duce cap­i­tal mar­ket pro­grammes to Nigerian schools.

“For our cap­i­tal mar­ket to be the most liq­uid in emerg­ing mar­ket economies, we need the build­ing blocks of a large num­ber of in­formed par­tic­i­pants re­quir­ing ef­fec­tive teach­ing for a high rate of fi­nan­cial mar­ket knowl­edge, spe­cial­ist skills in mar­ket in­ter­me­di­a­tion en­hanced by re­search, strong reg­u­la­tions to pro­tect in­vestors sup­ported by re­search, gov­ern­ment sup­port re­quir­ing strong ad­vo­cacy as a ser­vice to the mar­ket,”

Uwaleke said.

The cap­i­tal mar­ket pro­fes­sor also pro­posed to pur­sue the in­tro­duc­tion of cap­i­tal mar­ket pro­grammes in Nigerian uni­ver­si­ties ei­ther through the Na­tional Uni­ver­si­ties Com­mis­sion or Se­cu­ri­ties and Ex­change Com­mis­sion, get the NUC or uni­ver­si­ties to in­volve prac­ti­tion­ers in cur­ricu­lum de­vel­op­ment, li­aise with the di­rec­tors of Cen­tral Bank of Nige­ria-funded model busi­ness schools to mount cap­i­tal mar­ket post­grad­u­ate pro­grammes.

Also speak­ing as one of the dis­cus­sants at the vir­tual sym­po­sium, Os­car Onyema, chief ex­ec­u­tive of­fi­cer of the Nigerian Stock Ex­change, said the seam­less re­la­tion­ship be­tween the cap­i­tal mar­ket and academia are strate­gic and also a long-last­ing part­ner­ship which can help to mod­ernise the teach­ing and learn­ing with the needed skills and in­no­va­tions to drive the growth of the cap­i­tal mar­ket.

“A well-man­aged part­ner­ship can bring up well-trained pro­fes­sors and stu­dents. The NSE X-Academy was es­tab­lished to pro­vide ex­change in­for­ma­tion to in­di­vid­u­als to gain knowl­edge of the cap­i­tal mar­ket, cre­at­ing more re­la­tion­ship that will help im­prove the cap­i­tal mar­ket land­scape in Nige­ria. Also, academia lead­er­ship is vi­tal in cre­at­ing a joint steer­ing of lead­er­ship. Lead­ers and aca­demic ex­perts can come out to chat a way to this de­vel­op­ment through strate­gic, op­er­a­tional and trans­ac­tional mod­els. These are suc­cess­ful mod­els that can work col­lab­o­ra­tively with other driv­ers of the cap­i­tal mar­ket,” Os­car said.

Fur­ther­more, Bola Onadele Koko, the chief ex­ec­u­tive of­fi­cer of the Fi­nan­cial Mar­ket Data Quo­ta­tions (FMDQ) in his re­mark said the academia will need to col­lab­o­rate with other in­sti­tutes within the space to de­velop the cap­i­tal mar­ket.

Mean­while, Au­gus­tine Agom, a pro­fes­sor of se­cu­ri­ties law and cor­po­rate law at ABU, Zaria, said we can tar­get cap­i­tal mar­ket de­vel­op­ment to ed­u­cate and build ca­pac­ity as in­vestors. In­ter­ro­gate is­sues aimed at build­ing for de­vel­op­ing the ju­rispru­dence in the cap­i­tal mar­ket.

“Nige­ria has a large mar­ket of about 206 mil­lion pop­u­la­tions; so we should not bench­mark ours with coun­tries as Malaysia with 39 mil­lion pop­u­la­tion. There is a need for align­ment be­tween academia and the mar­ket. Cap­i­tal mar­ket aca­demics can do much in build­ing ex­per­tise. There is a need to build per­sonal en­gage­ment and it is im­por­tant we re­view our cur­ricu­lum from time to time. Sim­i­larly, academia has po­ten­tials to im­pact the cap­i­tal mar­ket,” the cor­po­rate law pro­fes­sor opined.

Hus­seini Mo­hammed, a lec­turer at NILE Univer­sity, said the cen­tral bank and de­posit in­sur­ance cor­po­ra­tion should be in­volved to drive growth and de­vel­op­ment of the cap­i­tal mar­ket.

“Deep­en­ing the mar­ket, ca­pac­ity build­ing, low re­turns hap­pen to be some chal­lenges ex­pe­ri­enced. The ACMAN mem­bers are ready to col­lab­o­rate to move the cap­i­tal mar­ket to a 21st-cen­tury mar­ket. We should en­sure we col­lab­o­rate to ex­pand the mar­ket. We should have qual­i­fied man­power. The CBN, NDIC and oth­ers should be in­volved in the body to help drive growth and de­vel­op­ment as wells a joint part­ner­ship to progress,” Mo­hammed said.

Oluwa­toyin Sanni, the chief ex­ec­u­tive of Emerg­ing African Cap­i­tal Group said academia has a huge role to play in the econ­omy and not just the cap­i­tal mar­ket.

“There are no con­certed and de­ter­mined na­tion­wide ef­forts to de­velop man­power for the in­dus­try. Cap­i­tal mar­ket ed­u­ca­tion is crit­i­cal at all lev­els. The lit­er­acy as­pect is im­por­tant to in­vestors on in­vest­ment. The academia will be needed as fac­ulty mem­bers to fos­ter in­no­va­tions through re­search. What has hap­pened in the world is the de­vel­op­ment of busi­ness hubs and the world to sup­port in­dus­tries and drive eco­nomic de­vel­op­ment. In­dus­tries need to cre­ate amaz­ing hubs for in­dus­tries to tap into. It in­volves clos­ing the sig­nif­i­cant gap that ex­ists to un­der­stand the po­si­tion. It is im­por­tant be­cause the ma­jor cap­i­tal mar­ket plays in eco­nomic de­vel­op­ment,” Sanni stressed.

Speak­ing on in­vestors’ ac­tiv­i­ties in the growth of the cap­i­tal mar­ket, she spoke of the in­volve­ment of ex­perts in the for­mu­la­tion of poli­cies for a healthy mar­ket and for a healthy econ­omy. She also said that pri­vate in­sti­tu­tions can also play a huge role as the cap­i­tal mar­ket in­sti­tu­tions (CMI) can cre­ate res­i­dent en­trepreneur­s, cam­pus am­bas­sador pro­grammes into the in­dus­try in or­der to close the ex­ist­ing gap.

Bola-Onadele-Koko

Pro­fes­sor Abubakar Adamu Rasheed

Toyin-Sanni

Uche Uwaleke

Os­car Onyema

Lamido Yuguda

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