Stockbrokers seek TETFUND allocation for capital market studies
The Chartered Institute of Stockbrokers
has urged the Federal Government to allocate a portion of the Tertiary
Education Trust Fund for the capital market literacy drive.
In their 2020 outlook report, the CIS
stated the need to overhaul the financial market to attract more
investors into the capital market.
In the report titled ‘The Nigerian
economic review: Outlook and recommendations for 2020’, the institute
urged the Federal Government to review the entire financial system for
enhanced growth and development.
They said a council that would comprise
different professional bodies should be set up to drive savings as a
strategy to encourage investors towards medium and long-term investment
The report read in part, “The Federal
Government should review the structure of the entire Nigerian financial
system significantly to raise the utilisation and development of the
capital market, especially fixed income and equity segments, to create a
balanced and faster growth inclined system.
“There is a need to set up an
independent council comprising banks, stockbrokers, mortgage
institutions, insurance companies, and Pension Fund Administrators to
more effectively coordinate the mobilisation of savings in the country.
“The Federal Government should
institutionalise the funding framework for capital market literacy in
Nigeria by financially empowering CML oriented bodies, as is done in
France through the Institute for Employment and Vocational Training .”
They also argued that since banks
controlled almost the entire liquidity in the Nigerian financial system,
they should support capital market investments, including the
reintroduction of margin lending with improved regulations.
They urged the Central Bank of Nigeria
to extend its liquidity support to the capital market, including the
equity segment, being the dominant institution providing liquidity
support for critical economic sectors.
The report further indicated, “The
Federal Government should direct pension funds in Nigeria to look beyond
fixed income investments and invest substantially in the equities
market for liquidity and stability purposes.
“Greater tax incentives should be
granted to companies and individuals in accordance with their levels of
savings and investments in formal and recognised outlets such as stock
The stockbrokers noted that in Nigeria,
economic policy was largely discharged by way of continual interventions
by the CBN while the Federal Government’s decision to close the
country’s land borders also had significant impact on performance
Figures from the National Bureau of
Statistics and the CBN showed that although there were improvements as
the year went by, the key parameters of economic performance were
significantly below the targets set by the Economic Recovery and Growth
The CIS said the Finance Bill, which accompanied the budget, might place more burden on taxpayers.
Source: Punchng, January 13, 2020