By Peter Egwuatu
The Chartered Institute of Stockbrokers, CIS, has declared that the 29 percent allocated to the capital expenditure in the proposed 2021 national budget is not enough to address the Nigeria’s infrastructural gap.
To this effect, the Institute has called on the Federal Government to dissect the funding gaps in the Nigeria’s budget and choose the capital market option to bridging the gap.
Speaking to Vanguard ahead of the Institute’s forth-coming annual conference, the CIS President, Olatunde Amolegbe, said, “We believe even with the 29% allocation to capital expenditure –about N3.4 trillion, is not sufficient to bridge the gap given the neglect in the past compared to about $14 billion annual requirement so the capital market via the private sector can provide this support.
“Our overriding objective for the conference is to provide direction for both fiscal and monetary authorities to deploy expansionary policies for sustainable growth and development.
“Capital market provides a better funding option in terms of cost and tenor, relative to bank loans. Our panelists shall also examine investment options for diversification of portfolios across asset classes and beyond the traditional asset classes. We plan to examine how the proposed CAMA 2020 will benefit the capital market as well as provide context on how The Nigerian Stock Exchange’s Demutualization shall benefit the capital market stakeholders.”
Commenting further, he said: “Federal and State Governments had several times raised capital through the market to fund development projects. Recently, the Federal Government raised N200 billion through its Sukuk 1 and 11 to fund over 26 roads across the six geopolitical zones in the country.”