BY PETER EGWUATU
The Nigerian pension fund assets is being anticipated to grow to N10 trillion by December 2014 following expected increase in the return on investment by Pension Fund Administrators (PFAs).
Mr. Abayomi Sanya, Chairman, Organising Committee of Stockbrokers Annual Conference disclosed this, weekend at a press briefing in Lagos, saying that pension funds which is being anticipated to grow to N10 trillion by December 2014 should not be allowed to lie idle in the banks as such fund could be used to finance the infrastructural needs of the country.
The 17th annual conference of the stockbrokers according to him has been scheduled to hold from October 30, 2013 and will attract dignitaries from both private and public sectors
According to the Stockbrokers Organizing Committee Chairman, “ The conference will avail opportunities to stockbrokers to learn how to package new instruments that can help fund infrastructure such as power, roads, housing etc. We also expect quoted companies to know various instruments used in raising funds to meet their operational challenges. This is because, we have observed that most companies that want to raise money from the capital market don’t know how to go about it and even the kind of instruments that would suit the purpose for which such fund is needed. In fact, we need consultants to help in this regard.”
He further stated that stockbrokers, quoted companies on the Nigerian Stock Exchange (NSE) and other stakeholders in the capital market are expected to be at the conference where various issues will be learnt.
“The theme of the conference is Power, Housing, Energy, Oil and Gas Challenges. A lot of development has occurred in terms of structure, product development and these are the things that we are expected to know. The Federal Government is making some effort to ensure that power works and we as stockbrokers are keying into such laudable effort.
“Capital market is the bedrock of any economy and to that extent; we should portray what the capital market can do. The power revolution is capital intensive; where is the money going to come from to fund such a sector? So the Nigerian capital market is expected to play critical role in infrastructure development” Sanya noted.
He further disclosed that at the forth coming conference facilitators from both international and local would brief stockbrokers on how to trade effectively in the secondary market and other windows.
He advocated the use of the capital market in addressing most of the infrastructural needs of the country such as housing deficit in Nigeria.
Abayomi-Sanya noted that the Nigerian capital market has not been maximally explored to play a major role in making fund available for housing and urban development in Nigeria.
“The challenge, therefore, is to render a housing financing system that will be able to deliver a robust housing finance system. Hence, there is need to link the housing sector to the capital market by converting or securitizing mortgage loans that would be traded in by loan originators through the secondary mortgage market. This way, more funds are created and more potential homeowners will be able to access funds to build or buy their own homes” he explained