By Nkiruka Nnorom
The federal government has declared its commitment to work with the capital market community to stem the volatility in the stock market.
Minister of Finance, Zainab Ahmed, made the declaration at a meeting with Capital Market Master Plan Implementation Council, CAMMI. She said that the federal government working with CAMMIC would devise ways to increase domestic retail investors’ participation in the market.
As part of the plan, she said that the FG will set up a working group that would review the state of the market and make recommendations on how to stabilise it.
“The government is concerned about the volatility in the capital market and is ready to work with CAMMIC to ensure that the market is stable,” Ahmed said.
According to her, the federal government is willing to set up a National Savings Committee that will make recommendations to the government on the best ways to mobilise savings that would lead to economic growth.
“We need to grow domestic investments that will be here to stay, not just people that are shopping around for where to make profit alone. It is true that the current financial system is still tilted largely toward the banks. There is a need to look at all the players and help solve the problems. “We know we need foreign investors in our market, but most importantly, we need to grow our domestic investors that are here to stay. The foreign investors come in and when anything happens, they quickly take their money and go away but our domestic investors will always be here with us.
“We are open to setting up the working group so we can have a review, extract recommendations and get to work. Those that can be done immediately we will try to do them and the long term ones we can then plan to do them as we move along.
“We have worked assiduously to diversify away from our over dependence on oil and gas and the first sector the president is interested in is in the agricultural sector. We know that we have not yet addressed the whole value chain and this can be driven if we have a very active commodities exchange market because our goods will be of high standards as required by industries in Nigeria and outside the country,” she added.
Mr. Olutola Mobolurin, Chairman, CAMMIC, speaking at the event, expressed the need for the government to pay more attention to the capital market.