Some capital market operators last Thursday expressed different views on the likely effects of the 2012 Federal Budget on the capital market. They expressed their views in separate interviews with the News Agencuy of Nigeria (NAN) in Lagos. Alhaji Rasheed Yussuf, the Chairman of Association of Stockbroking Houses of Nigeria (ASHON), said that the budget would lead to market growth if properly implemented.

He said that investor confidence would be enhanced if the problems of insecurity, agriculture, education and power were addressed as indicated in the budget. Yussuf said that the budget would encourage private sector participation, adding that more companies would source funds from the market if the budget was properly implemented.

Malam Garba Kurfi, the Chief Executive Officer, APT Securities and Funds Ltd., said that the country needed more capital allocation than recurrent allocation for the economy to experience meaningful growth.

He said that government should address the problems of power, transportation and unemployment to encourage the growth of the capital market in 2012. Kurfi said that government should stick to its promise of ensuring that multinationals were encouraged to seek quotation on the stock exchange to increase the depth of the market.

He said the challenge of insecurity did not require the N921.91 billion allocated to it in the budget, adding that the problem of insecurity was a result of poor governance

Another expert, Mr Okechukwu Unegbu, also said that N2.472 trillion earmarked for recurrent expenditure in 2012 was on the high side. Unegbu, the Chief Executive Officer of Maxifunds Investment and Securities Ltd., said the capital market would only experience boost when the decay in  infrastructure was addressed. He said that the country needed more capital allocation to grow, adding that more capital allocation would solve the problem of poor infrastructure.