Some capital market operators have called on the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to encourage listing of more companies to increase stock market liquidity.
They told the News Agency of Nigeria in Lagos on Thursday that listing of more companies would create activities in the market and enhance domestic investor participation.
Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that increasing domestic investor participation in the market had become necessary as foreign investors might not help the country due to the current economic challenges.
He urged that institutional investors such as Pension Fund Administrators (PFAs) should be encouraged to increase their exposure and quality of stocks in the market.
“Institutional investors should invest more in good companies, rather than doing five per cent when they can do 25 per cent,” he said.
“PFAs will be challenged to create activities in the market, if there are good companies to invest in,” Kurfi said.
The managing director also encouraged Nigerians to save in order to invest and develop the market instead of depending on foreign investors.
“It is true that we do not have enough, but we can still save from the little we have for the rainy days,” he said.
Mr Emeka Madubuike, the immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), urged the Federal Government to embrace the capital market for long-term infrastructure projects.
Madubuike said that the government should use the market more to boost liquidity.
“Funding of long-term infrastructure projects must come through the capital market for growth and development.
“Every developing economy is tied to its capital market,’’ he said.
Madubuike said that there must be a linkage between the economy and the capital market for Nigeria to witness growth and development.