Managing Director, Central Securities Clearing System (CSCS), Mr Kyari Abba-Bukar, has said that the capital market has created access to funds for infrastructure development through the sale of bonds and equities.

Abba-Bukar said this at a monthly seminar organised by the Nigerian-South African Chamber of Commerce in Lagos. Speaking on the topic “The Role of CSCS in the Nigerian Economy”, he said that the CSCS has improved the economy through mobilisation of funds from the surplus to the deficit sectors.

“CSCS as a central security depository has been involved in the regulation of the activities of the Nigerian capital market. The capital market is a significant aspect of the economy which role cannot be underrated. It has created various opportunities for diversified investments, promotion of Small and Medium Enterprises (SMEs) and job creation.” he said.

Abba-Buka said that it was expedient for more Nigerians to invest in the stock market in order to achieve economic development of the nation.  ”For us to achieve the desired economic growth as a nation, at least 20 percent of Nigeria’s population should invest in the capital market. CSCS has helped restore investors’ confidence by minimising their risks and numerous complaints of failed trades and low market liquidity,” he said.

He said that CSCS was involved in the issuance of International Securities Identification Number (ISIN), which helped to eradicate fraudulent practices in the capital market.

He said that there were plans to commence public sensitisation on the importance of dematerialisation of share certificates. He said that about 70 percent of existing stocks have been dematerialised into the digital system of the CSCS, while advising shareholders to embrace the dematerialisation as it would reduce the risk of duplicating or losing share certificates.

“Dematerialisation will help eradicate the burden of keeping shares certificates. It will also ensure an easy sale of small fractions of investors’ shares.” he said.