CIS: Local investors still bugged by fear, others

The President of Chartered Institute of Stock Brokers (CIS) Mr. Adekoje Adedapo, has said that despite the full restoration of the stock market after the 2008 global meltdown, and continuous involvement of reputable foreign investors, the local investors are still bugged down by fear and low levels of confidence and as such, have not been participating as much as they should.
Adedapo who stated this at SEC Journalists Academy in Uyo, Akwa Ibom State said: “The truth is that we are not yet where we are supposed to be. In fact, we still have a very long way to go, in bringing the Nigerian Capital Market to a level where it will truly galvanise the leap of the Nigerian economy to ‘developed’ status”.
He noted that Nigeria has a huge infrastructure deficit, which the government alone cannot shoulder, adding that slow pace of progress in this area is largely defined by the relatively low priority and attention given to the Capital Market by government, despite the massive role that the market played in indigenization, banking recapitalization, and most recently, in providing the needed liquidity to get the country out of recession.
“Nigeria, as the globally acknowledged “giant of Africa” has huge responsibilities to its people and the African continent,” he said. “Our continuous appellation as a “less developed country” is both an aberration and an embarrassment to Nigerians and Africans alike.
”The government at all levels in the country must begin to give capital market development priority attention in its scheme of things. Stockbrokers must be involved in the entire government budget process, and in major policy drafting within and internationally. It is in the interest of the country that stockbrokers be involved in government delegations to major international economic and financial events.
“If the percentage of Nigerians investing in the market can be increased to just 20%, for a start, in the next five years, there will be a massive growth in the capital market, and by extension, the national economy.”
Adedapo noted that major companies operating in the economy must be wooed and encouraged to list on the capital market, as that will greatly enhance the benefits derived by Nigerians on their patronage of these companies.
”The SEC, which has been performing creditably as apex regulator, must redouble her efforts in entrenching investor confidence and good corporate governance,” he said. “At CIS we have zero tolerance for indiscipline and fraudulent practice. Just like with SEC, we have punished several of our members who were found wanting in professional behavior.”

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