Obasanjo tasks government on project financing

Seeks commencement of at Abuja commodity exchange

Former Head of State, Olusegun Obasanjo has stressed the need for the Federal Government to source medium and long term funds from Nigeria’s Capital Market to execute projects.

Besides, Obasanjo described the on-going capital market literacy programme of the Chartered Institute of Stockbrokers (CIS) as a strategy to expose Nigerians to the pre-eminent position of the capital market in the development of the economy.

Obasanjo, who stated this at meeting with the principal officers of the CIS at Ota, at  the weekend,  commended the institute for taking its enlightenment programme on the relevance of the capital market to the growth and development of Nigeria’s economy to the door step of every citizen.

He also lauded the Institute’s introduction of Diploma Programme in Securities and Investment, noting that the approach would bring the youths into the capital market community as future entrepreneurs.

The Nigeria’s capital market, according to him, has always been a platform where individuals can undertake capital formation while corporate organisations and governments at all levels can mobilise medium and long term funds for developmental projects.

According to him, there is a correlation between the development of an economy and its capital market.

He added  that no economy could thrive without a strong and virile capital market.

He advised the Federal Government to take advantage of the Nigeria’s capital market to revive the economy by sourcing  cheap funds to finance  budget deficit and execute the capital projects in the 2016 fiscal budget.

Obasanjo, who noted that many distressed economies had bounced back on the strength of their capital market, cited Ethiopia where the economic revival was achieved through effective and efficient deployment of the commodity exchange by its government.

To reinforce the diversification programme ,  Obasanjo urged the Federal Government to ensure immediate commencement of operation at the Abuja Commodity Exchange.

He appreciated the institute for taking a bold step in addressing issues affecting the Nigerian Capital Market and promised to support the Institute in its advocacy for market development.

He urged them to provide technical support for the Federal Government to expedite action on the commencement of the exchange

He also advised that there was need to increase the level of financial literacy among the citizens and local investors in Nigeria with active government participation.

Responding, the President and Chairman, Governing Council of the CIS,  Oluwaseyi Abe  recalled that as Nigeria’s President ,  Obasanjo had taken keen interest in ensuring a sustainable capital market operation .

Abe explained that when Obasanjo assumed office as the President, there was an increase in the Nigerian Stock Exchange’s market capitalisation from about N700 billion to N14 trillion.

“However, after his exit, the capital market had witnessed a downturn from N14 trillion to about N9 trillion currently, “ said Abe.

Abe added that the purpose of the visit was to discuss issues of market development with former Head of States, in continuation of the Institute’s efforts to ensure a stronger and sustainable capital market with renewed interest and confidence of all stakeholders .