Stockbrokers Restate Need to Fund Budget Deficits via Capital Market
The Chartered Institute of Stockbrokers (CIS) has restated the need for the federal government to utilise the Nigerian capital market to fund its budget deficits. Speaking in Lagos, Chairman of Organising Committee of the forthcoming 2017 CIS yearly national conference, Umaru Kwairanga, said as long as the government puts in place policies and mechanisms to ensure prudence and accountability and offers competitive returns ,the capital market will remain a viable option for funding its deficits.
“The funding of government’s deficits is an ongoing issue and cannot be tied to the current year’s budget alone. The capital market exists to bridge the gap between investors who have funds to invest and users whether government or the private sector who need funds at any particular time,” he said.
According to Kwairanga, the capital market has the potential to fill the gap in infrastructure investment given the limited resources of government, explaining that there is no single solution to Nigeria’s infrastructure needs.
He stated that the most effective approach lies in mobilising funds that would finance critical infrastructure development through the instrumentality of the capital market.
The stockbroker urged the government and other regulatory authorities to be consistent in their resolve to tackle the issues that have held the economy down in the past few years.
“Our prayer is that the government, the Central Bank of Nigeria, and other regulators remained consistent in their resolve to tackle the issues that have held our economy and this great country’s potential down in recent years. That will definitely boost investors’ confidence further and guarantee stability ,” he said.
On the workshop, which is slated to hold in Abuja on July 4, he said that the CIS has chosen the theme: ‘Transiting from Recession to a Global Power: A Working Template for Nigeria .’
According to him, the theme was chosen because they believe that what has happened in the last year is an aberration.
“Nigeria with its bountiful human and material resources and untapped opportunities should be on a consistent growth trajectory to taking its rightful place as a global power. Some mistakes were, however, made over the years especially in the last four decades that have consistently held back our potential. Our belief as an institute is that with the right strategies in place and proper implementation, we can reset this country and fast track it to its rightful place in the comity of nations. We see the recession as a temporary blip and are confident that with the right template, we can attain our rightful status as a global power,” he said.