The federal government and commercial banks are focusing on the N5 trillion pension fund being managed by pension administrators as a means of revamping the dwindling economy. This was stated at the opening session of a two-day capital market stakeholders’ forum in Abuja organised by the Joint National Assembly Committee on Capital Market.
To enable access to the fund for investment and infrastructural development, the National Assembly has promised to give expeditious passage to proactive capital market legislation with the capacity to boost the nation’s economy.
Vice President Yemi Osinbajo who was represented by the Economic Adviser to President Muhammadu Buhari, said there was the need for the capital market to attain its full potentials.
Osinbajo stated that the utilisation of pension funds would help to boost production, infrastructural development and economic growth. He listed priority areas of the federal government to include diversification of the economy; power, roads and rail reforms and ease of doing business, among others.
For effective functioning, he said Nigeria’s capital market required a stable macro-economic environment, strong legal and regulatory framework to protect property rights, good corporate governance as well as strong financial infrastructural development adding that the capital market has a key role to play in helping to finance domestic borrowing plans.
“We need the capital market for the mobilisation of finance. And to mobilise that finance, there is the need for enforcement of rules and regulations which are the bedrock of capital investment,” he said.
He noted the need for the review of existing laws such as the Investment and Securities Act 1999 to boost the potentials of the capital market.
