Brokers chart path to sustainable growth
•Seeks renewed policy on infrastructure investment, others
The Chartered Institute of Stockbrokers (CIS) has called for fresh policy on investment in infrastructure and abrogation of multiple taxation system to fast track the nation’s economic growth.
The Institute urged government to lower the interest rates and create an enabling environment for investors by removing barriers and allowing for the free movement of capital.
Existing infrastructure in Nigeria are not only inadequate, but also decayed and in need of rehabilitation, and added to multiple taxation constitute big disincentives to investments in the country, as investors would spend more providing the required infrastructure to boost their businesses, while the taxes dip into their profits.
The President of CIS, Oluwaseyi Abe, regretted that the country suffered from weak infrastructure development and limited revenue base, amid strong and competitive economic fundamentals, adding that renewed investment would facilitate an ‘all inclusive’ growth.
Furthermore, he appealed to the Federal Government to consider the age-long plan to encourage multinational companies to list on the Nigerian Stock Exchange (NSE) in order to deepen the market and enhance liquidity in the medium and long term.
He described the 2017 budget as highly perceptive, saying: “It is good that the government has decided to spend more on infrastructure as a necessary measure for long term and sustainable economic development. The successful implementation of the Federal Government’s 2017 Budget of Recovery and Growth is critical. We believe that the economic fundamentals of Nigeria are still strong, while we have enjoyed political stability for a while.”
He pointed out that the first step toward economic growth is a strict execution of the budget in order to get out of recession, adding that there must be reduction in interest rates to boost the real sector and empower the populace with more investible funds.
Abe lamented that despite strong potential of the nation’s capital market to generate huge returns on investment (ROI), many blue chip companies are trading below their regular values.
He noted that the business terrain must be more investor-friendly for micro, small and medium scale enterprises (MSMEs), to flourish, noting that the capital market must be developed to assist local entrepreneurs grow their businesses.
He urged investors not to despair on the current economic crisis, but rather leverage on the low share price to beef up their portfolio.
The registrar of the Institute, Adedeji Ajadi, stressed the need for government at all levels in Nigeria to access finance through the capital market to fund more development projects.
According to him, the country needed to break out from a vicious cycle of poverty and attendant socio-economic imbalance through optimal utilisation of the capital market to finance small businesses and long-term projects.
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