By PETER EGWUATU

The Chartered Institute of Stockbrokers, CIS has charged government in the various tiers to use the Nigerian capital market to fix infrastructural deficit in the country.

The President of CIS, Mr. Albert Okumagba said “All over the world, the capital market drives the entire economy as it provides a platform for government at all tiers to access medium and long term fund to execute developmental projects. In a similar vein, companies also utilize the market to beef up capital base and expand generally while individuals take advantage of the market to do capital formation.”

He stressed that the Nigerian capital market is grossly underutilized relative to its absorptive capacity. According to him “The government, companies and individuals are not using the capital market to meet long term funding requirements while the back-seat approach of the capital market operators has not helped matters.

However, the time has come for total review of some of the government’s policies that are at variance with the development of the capital market in order to promote an enhanced use of the market to finance the huge infrastructural deficit which has become the bane of Nigeria’s economic development. We believe that the effective and efficient utilization of the capital market facilities would enable the Federal Government to finance the 2015 budget despite its frightening infrastructural deficit.”

Commenting on the interest regime in the country, Okumagba said “ The interest rate is a veritable tool in national development. In addition to aiding economic development as a whole, it also sends signals about the expected dynamics of the capital market. A high interest rate discourages long term investment and lowers demand generally; whereas a low interest rate regime stimulates demand and helps with capital formation for long term investment.”