The Nigerian Stock Exchange market has been rated not optimally feasible and under- performing.
Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, who made the disclosure, said the nation’s money and capital markets remain shallow.
Nigeria’s capital market, according to the minister, has not been able to provide a vibrant mainstay for the ailing economy.
Mrs. Ahmed stated this in Abuja on Thursday during the 2020 budget defence before the Senate Committee on Finance, at the National Assembly.
The statement was made in her response to a question from a member of the committee, Senator Kasim Shettima.
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Shettima had asked why the capital market lacks depth of lifting the economy out of the woods, or absorbing the effects when Nigerian economy went into recession.
Lamenting the vulnerability of the nation’s economy, the Finance minister explained that a larger percentage of investments in the nation’s capital market are done by foreign investors.
The dominance of foreign players in the market and holding of enormous share of the market by expatriates is not healthy for the country, she added.
Proffering solution to the shallowness of the Nigerian financial markets, Ahmed recommended an amendment to the Pension Act to enable government invest the enormous pension funds in the markets as well as in the development of infrastructural facilities.
She added that Federal Government is working together with capital markets operators to mobilise domestic investors in the capital market.
The Ministry of Finance, Budget and National Planning proposed a total of N3.8 billion for its 2020 operations.
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