Senator Urge PenCom to Utilise Capital Market for Better Returns
The Chairman, Senate Committee on Capital Market and Institutions, Osita Izunaso, yesterday advocated for the National Pension Commission (PenCom)’s N 19 trillion exposure in the capital market, calling on Pension Fund Administrators to utilize the market for better return on investment.
The Senator said this when he led other Senators, alongside the
Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda on a tour to the Chartered Institute of Stockbroker (CIS) building in Lagos.
He disclosed that the Senate would be having a public hearing on the Investment and Securities Bill that was not passed into law by the past administration of President Muhmmadu Buhari.
Speaking earlier, the president, CIS, Mr. Oluwole Adeosun seeks the support of the Senate Committee on Capital Market in its quest to get the CISIN Bill passed and signed by President Bola Tinubu.
Speaking further, he said, “Another area where the institute urgently needs your support is in relation to our advocacy activities. The market capitalisation of the Nigerian capital market, as at today, is just about 14 per cent of the country’s Gross Domestic Product (GDP).
“Given this scenario, it is difficult for the market to serve its traditional role of being a barometer for gauging the economy, or to galvanise economic growth effectively.
“The government therefore needs to come up with policies that will encourage and stimulate participation in the capital market. Large companies in the country should be encouraged to list their shares on the stock exchanges, through tax concessions and ease of doing business programmes.
“Securities dealing firms should also be encouraged through easier access to liquidity, particularly from the banks. Pension funds in the country should be guided to invest a much higher proportion of their funds in the equities market as is done in the advanced countries.”
When the delegations visited the Nigerian Exchange Limited (NGX), Izunazo assured the commitment of the Senate in driving legislative reforms that would propel the Nigerian capital market to new heights.
He emphasized the pivotal role of the capital market in fostering economic prosperity and urged stakeholders to work together towards achieving common objectives.
He said, “We are going to look at all the legislative framework in the National Assembly waiting for amendment in one form or the other.