By Chinenye Anuforo
The Vice President & Treasurer, International Finance Corporation (IFC) Mr. Jingdong Hua, has called on the government to create an enabling environment to support the Debt Capital Market growth.
Jingdong who made the call in Lagos during FMDQ OTC Securities Exchange 2017 Nigerian Debt Capital Markets Conference & Awards, held last week explained that that for Africa to meet and maximise its potential in the global financial markets space, Nigeria must be one of its greatest engines of growth.
He also urged the government to promote financial markets education for capacity building of market participants, and the general public.
Also at the conference, which focused on the theme “Positioning for Growth”, stakeholders called for the deepening of the DCM in Nigeria, to support the Nation’s efforts in achieving inclusive economic growth.
Specifically, the Finance Minister Mrs. Kemi Adeosun in a video message to the conference, called for the deepening of the Debt Capital Market, with specific products that can be channelled towards infrastructure financing. She said the government through its various reforms, was focused on driving growth.
In his presentation on Nigeria’s Debt Capital Market Outlook, Mr. Bolaji Balogun,CEO Chapel Hill Denham asserted that the Debt Capital Market, was a veritable platform for financing critical areas like infrastructure that can reposition economies like Nigeria.
According to him “All of Nigeria’s socio-economic challenges are Debt Capital market solutions”, stressing that they can finance Nigeria’s infrastructure deficits and help alleviate poverty.
He used Lagos as an example of a Sub-National that has accessed the market, by raising about N407 billion in domestic market with a robust economic plan.
Balogun said “Lagos spends its bonds on 100 per cent capital expenditure, with 70-75 per cent going to physical infrastructure and 25-30 per cent, going to social infrastructure”.
The Chapel Hill Denham boss made a strong appeal for the government to fully utilize the capital market in its privatization, concessions and restructuring of state-owned companies.
Mr. Mounir Gwarzo’s, the Securities and Exchange Commission (SEC) Director General, in his keynote address provided an overview of the recent milestones achieved in the
Nigerian DCM and further highlighted that the Nigerian Economic Recovery and Growth Plan underscores the role of the private sector in leading the growth that Nigeria desires. In his words, “to sustainably develop Nigeria, reliance must be shifted from ‘owners’ capital’ and short-term funding from commercial banks to long-term capital from the DCM”.
Welcoming guests to the Conference & Awards, Mr. Jibril Aku, Vice Chairman, FMDQ commended all stakeholders for the support given to FMDQ thus far, while noting that the OTC Exchange will continue to provide the requisite platform to power growth and foster the deepening of the Nigerian DCM.