June 17, 2009

Fund projects from capital market— Minister

ABUJA— he Minister of Finance, Dr Mauzur Muhtar has emphasized the need for funding of long  term projects through the capital market,  saying the development of solid  infrastructure required domestic sources of financing rather than relying on public revenue.

According to him, “there is the need to strengthen the capital market as it has become difficult to match resource revenue inflows with the demands of the investment needs. When you have shortages and when you have a mismatch between the gestation period and the revenue inflow, so you have to look into other sources”

Dr Muhtar who spoke while playing host to Ogun State Governor, Otunba Gbenga Daniel in Abuja described the steps taken by the state to raise bonds through the capital market as a step in the right direction emphasizing that “ meaningful  long term projects being pursued by your government  requires investment in the capital market”.

He said the Federal Government in the past had relied on borrowing from external finances “which has its challenges”, adding that “ but we feel that more than ever before, we need to tap into domestic sources of financing our developmental needs and in that regard the domestic capital market needs to be developed and sustained.”