LAGOS - Amb. Isaac Aluko-Olokun, a former Minister for National Planning, says that government interventions are more effective in influencing the direction of the capital market than market forces.
Aluko-Olokun who was delivering a keynote address at the first Annual Conference of the Institute of Capital Market Registrars (ICMR) in Lagos, said that this reality was borne out of current trends in more developed economies.
He said that in more developed economies, government had taken the centre stage in the management of challenges posed by the global financial crisis.
As currently done in many developed and emerging economies, the Nigerian authorities should be proactive to inject liquidity in the market.
The measures adopted so far have been indirect CBN’s monetary policies which have not generated desired result. What is missing is complementary fiscal action by the ministry of finance, he said.
The former minister said that stakeholders challenge in the current situation was leveraging their experience to improve investors confidence and move the capital market to the next level.
He said that all stakeholders must put on their thinking caps and work together to develop the Nigerian capital market.
Aluko-Olokun listed key problems of the market as loss of investors confidence, overhang of excess supply of shares, liquidity crunch, asymmetrical fiscal and monetary policies, regulatory weakness as well as poor corporate governance practices.
|
