The capital market in Nigeria has the potential to finance the National Development Plan (NDP) and attain the ambitious goal of a $1 trillion economy within the decade. Professor of Capital Market at Nasarawa State University Keffi, Professor Uche Uwaleke disclosed this in Lagos.
Uwaleke in his keynote address at the Capital Market Correspondent Association of Nigeria (CAMCAN) annual conference with the theme “Leveraging The Capital Market In Financing The National Development Plan” noted that one sure way of realizing the dream is by establishing capital market based infrastructure funds.
He said the financing of the NDP through the capital market will depend to a large extent on breaking the barriers to its development. “Efforts to meet the current challenges of the Nigerian capital market will inevitably set the stage for it to play a prominent role in not only achieving the growth targets set in the country’s NDP but also the dream of a $1 trillion economy within the next 6 years”.
Professor Uwaleke advised that in order to achieve the goal there need to amend the Land Use Act 1978 to prevent constraints that may arise in the processing of Mortgage Backed Securities (MBS) and finance critical and viable infrastructure through securitization.
According to him “The Federal Mortgage Bank of Nigeria should become a major player in the primary and secondary mortgage markets to ensure access to adequate funding and create investor confidence in the Nigerian mortgage industry.There is need to add “Securitization Law” provisions to ISA 2007 currently undergoing amendment“.
He suggested that the government should utilize more infrastructure bonds when borrowing from the domestic market.Like Malaysia and India, promote more infrastructure funds. Adding that both the Federal and Sub National governments should periodically invest in the Nigeria Infrastructure Fund.
Noting that government should facilitate increased participation of pension funds and insurance companies in the capital market and privatize government enterprises by listing on the Nigerian Exchange Limited (NGX)