Academia seeks capital market collaboration to stimulate economic growth

The Academia has called for active collaboration with capital market practitioners to stimulate in-depth discussions on issues that would spur market development.

According to the President, Capital Market Academics of Nigeria, Prof. Uche Uwaleke, this would be a game-changer in efforts to develop the local bourse.

Speaking at a symposium themed, “Role of the Academia in the development of the Nigerian Capital Market,” Uwaleke argued that with proper enablement, the academics can truly support the Securities and Exchange Commission (SEC) efforts to lift the market to enviable heights.

He said: “The role of Academia in research includes carrying out solution-driven research, which benefits the market, preferably in conjunction with market players, who assist with problem identification, and enhance visibility of the research outcomes through sharing with a larger audience (especially the capital market community).

“Role of the Academia in service includes strong advocacy from the Ivory Tower via speeches, opinions, participation in extracurricular activities, both within and outside the University, related to capital market development.

“Role of enablers in teaching includes pursuing the introduction of capital market programmes in our Universities either through the NUC or AVCNU (SEC). Get the NUC or Universities to involve practitioners in curriculum development (SEC).”

He said for the Nigerian capital market to rate at par with peers in other emerging markets, it must constitute a large number of informed participants through effective teaching for a high rate of financial market knowledge.

The University Don also called for a strong regulation, driven by research to enhance investors’ protection in the market.

Therefore, he suggested that the Commission should consider proposing a capital market development levy as part of market transactions costs akin to what is obtained in South Africa, to enhance funding of these enablers.

Such a levy, according to him, should be a minute percentage on the buy and sell-side in order not to significantly affect transaction costs.

“Transactions costs on the sell side, include Brokerage charges, NSE charges, CSCS charges, Stamp duties, VAT on NSE charges, VAT on CSCS charges. A little amount should also be added as capital market development charges,” he said.