In a decisive call to action, the Chartered Institute of Stockbrokers (CIS) has unveiled a comprehensive strategy to propel Nigeria’s economy toward the $1 trillion mark through targeted reforms in the capital market, sidestepping the pitfalls of increased borrowing and fiscal overreach.
At the core of the 13-point agenda, signed by CIS President Oluropo Dada and the Registrar, Dr. Josiah Akerewusi, is a bold recommendation for the Federal Government to list state enterprises, including the Nigerian National Petroleum Company Limited (NNPCL), on secondary markets.
Such a move, they argue, would invigorate the capital market, enhance corporate profitability, and generate sustainable tax revenues for the government.
The proposals were adopted from recent CIS’s 28th Annual Conference in Ibadan with the theme “Capital Market as Catalyst for the $1 Trillion Economy.”
The gathering, which convened top policymakers and industry leaders, underscored the untapped potential of Nigeria’s informal economy, which, despite its size, remains largely disconnected from capital market activities.
The communique advocates for policies that incentivize private enterprises and smallto-medium enterprises (SMEs) to list on the Nigerian stock exchange.
Suggested measures include tax holidays, regulatory reviews of the Investment and Securities Act, and alignment with global best practices to bolster investor confidence.
To modernize market operations, CIS called for the integration of fintech solutions, blockchain technology, and digital innovations to attract techsavvy demographics, including Millennials and Gen Z.
Addressing foreign exchange instability, the Institute urged reforms to eliminate barriers for foreign investors, thereby boosting Foreign Direct Investment (FDI).
“Rebasing the GDP to reflect the true size of the Nigerian economy is critical to reclaiming its position as Africa’s largest economy and achieving the $1 trillion target,” the statement emphasised.
CIS highlighted the necessity of aligning the capital market with Nigeria’s economic structure, prioritizing agriculture, oil, and gas sectors.
Additionally, they proposed project-tied bonds with irrevocable standing payment orders (ISPOs) to finance infrastructure development.
To enhance investor participation, CIS advocated for expansive financial literacy campaigns to demystify investment risks and rewards, particularly for underserved market segments.
Addressing Nigeria’s debt burden, the communique called for restructuring and extending debt maturity to enable resource optimisation.
It also identified the commodities ecosystem as a strategic growth area, urging the government to strengthen commodity trading and exchanges to boost exports, attract foreign exchange, and stabilise the naira.
The Institute urged the government to create an enabling environment for private equity, venture capitalists, and angel investors to support SMEs.
Drawing parallels to strategies employed by global economic powerhouses like China and the United States, CIS stressed the need for tariff policies that protect and nurture local industries.
By implementing these measures, the stockbrokers affirmed, Nigeria could unlock its economic potential and achieve sustainable, inclusive growth, positioning the capital market as a pivotal driver of national development.
