BY Peter Egwuatu

The Chairman, Alpha African Advisory, AAA,  Mr. Mustapha Chike-Obi  and President, Chartered Institute of Stockbrokers, CIS, Mr. Oluwaseyi  Abe have stated that the Federal Government can borrow money to finance the much needed infrastructure that will enhance production and create job opportunities.

They stated that the Nigerian capital market has the capacity to provide the long term funds needed to transform the economy. Chike-Obi also advocated Indonsian and Indian models of capital formation in order to move the Nigerian economy forward.

Besides, Chike-Obi who was the Guest Speaker at the Investiture of the 9th President of the Chartered Institute of Stockbrokers (CIS), Mr. Oluwaseyi Abe in Lagos at the weekend explained that at least an investment of 30 percent of the Gross Domestic Product (GDP) in infrastructure annually would create a sustainable economic growth as it is done in Indonesia and India. Chike-Obi who spoke on: “Growth, the only Nigeria’s Imperative” canvassed for massive investment in infrastructure either through savings or borrowing at a very low rate.

“We can borrow to finance infrastructure.  Government must use its balance sheets creatively.  60 per cent of GDP in the United States in guaranteed Nigeria can create Federal Guaranteed Agencies that are allowed by law.

“This system makes it easier for banks to lend money.  It also encourages foreign investors to come to a country.  What we have currently in Nigeria is currency-adjustment inflation.  By this currency adjustment inflation, a pensioner has lost about two-third of his pension”, he said.

Speaking on the Nigerian capital market, Chike-Obi explained that the market trades about ten million Dollars worth of securities daily but has capacity to do more.  He stated that the issue of market liquidity must be addressed without further delay.

Corroborating Chike-Obi, Abe explained that the capital market would continue to be the main driver of the economy. “The importance of the financial system cannot be overemphasised.  It is the axle on which the wheel of the economy revolves.  A robust financial system engenders a stable macro-economy.

“The Capital Market is one of the most important drivers of economic growth and development.  It is a major source of funding for infrastructure with strong socio-economic impact; and there is a correlation between a robust capital market and accelerated growth”, said Abe.

Abe assured the Capital Market regulators and operators of his administration’s resolve to initiate and implement policies that would bring about a turnaround of the capital market.