Nigerian Stockbrokers Propose Strategies to Deepen Capital Market and Achieve $1 Trillion Economy
Nigerian stockbrokers have outlined strategies to help the Federal Government deepen the capital market in its pursuit of a $1 trillion economy. The proposals were made in a communique signed by the President and Chairman of the Council of the Chartered Institute of Stockbrokers (CIS), Mr. Oluropo Dada, and the Registrar/CEO of CIS, Dr. Josiah Akerewusi.
The communique followed the 28th Annual Conference of the CIS held in Ibadan, themed “Capital Market as Catalyst for The One Trillion Dollar Economy.” Dada emphasized that adhering to these strategies would allow the government to meet its economic targets without increasing borrowing.
The stockbrokers urged the government to list the Nigerian National Petroleum Company Ltd. (NNPC) and inactive state enterprises on secondary markets to deepen the capital markets, enhance profitability, and generate revenue through taxation. Additionally, they suggested rebasing Nigeria’s Gross Domestic Product (GDP) to reclaim the country’s status as Africa’s largest economy, which would create opportunities for reaching the $1 trillion goal.
Dada also advocated for policies that incentivize indigenous, privatized companies, and Small and Medium Enterprises (SMEs) to list on the Nigerian capital market. He pointed out that the informal economy, a significant part of Nigeria’s GDP, remains largely untapped by the capital markets. The government was also urged to conclude the review of the Investment and Securities Act and for regulators to update relevant rules in line with global best practices, boosting investor confidence and creating a favorable business environment.
Further, Dada proposed integrating the Nigerian capital market with fintech solutions, blockchain technology, and other digital innovations to improve accessibility, efficiency, and transparency. This would attract younger generations such as Millennials, Gen Z, and Gen Alpha. Market operators were encouraged to develop products targeting the tech-savvy youth demographic.
He also recommended addressing foreign exchange challenges and other barriers to foreign investment, which would enhance Foreign Direct Investment. Moreover, Dada emphasized the importance of financial literacy programs to address the knowledge gap among investors, calling for collaboration between regulators and stakeholders.
The stockbrokers urged that the capital market better reflect key sectors such as agriculture and oil and gas, which align with Nigeria’s GDP composition. They suggested that all tiers of government leverage the capital market to raise long-term funds for infrastructure development through project-tied bonds with irrevocable payment orders to minimize default risk.
To address Nigeria’s debt burden, Dada recommended debt restructuring and an extension of the maturity period to better manage resources for economic development. On the monetary front, he called on the Central Bank of Nigeria to maintain a tight monetary policy to control inflation. Additionally, the government was urged to explore opportunities in the commodities sector to boost GDP and strengthen the Naira through improved commodity trading and exchanges.
Dada concluded by advocating for structural reforms, including deregulation, improved debt management, and public awareness campaigns. He called on the government to put in place policies to attract private equity, venture capitalists, and angel investors, which would support the growth of local industries and SMEs.
