KEY POINTS
- NGX Group Chairman Umaru Kwairanga urges capital market stakeholders to work more closely to expand long term funding.
- He says issuing houses connect businesses and governments with sources of capital.
- Kwairanga calls for stronger African capital market links to widen funding opportunities for businesses.
MAIN STORY
Dr Umaru Kwairanga, Group Chairman of Nigerian Exchange Group (NGX Group), has urged capital market stakeholders to strengthen collaboration to improve Nigeria’s ability to mobilise long term funding for economic development.
Kwairanga made the call in a goodwill message at the 30th anniversary celebration of the Association of Issuing Houses of Nigeria (AIHN) in Lagos on Wednesday night.
He said exchanges, regulators, issuing houses, stockbrokers, investors and other market participants needed to work more closely to develop a deeper, more accessible and efficient capital market.
According to him, collaboration, professionalism and innovation would be important to expanding access to capital and increasing the market’s contribution to economic growth.
Kwairanga said issuing houses had helped connect businesses and governments with sources of funding by turning financing requirements into opportunities for investors. He added that their work had supported enterprise and contributed to the development of Nigeria’s financial system.
He urged AIHN to build on its achievements over the past 30 years while adapting to the changing needs of issuers, investors and the wider economy.
“I encourage the association to continue strengthening the standards of professionalism, innovation and collaboration that have underpinned its contribution to the market,” he said.
The NGX Group chairman said Nigeria needed a capital market capable of mobilising long term funding, directing investment towards productive enterprises and widening participation in wealth creation.
He described the anniversary as an opportunity for stakeholders to consider how the market could respond to emerging opportunities and challenges.
“Our task is not simply to preserve what has been built over the last three decades. It is to build a market that is deeper, more accessible and better equipped to meet the financing needs of the economy in the decades ahead,” he said.
Kwairanga also called for greater use of growing connections among African capital markets to increase the pool of funding available to businesses across the continent.
He said Nigeria had an important role to play in advancing African capital market development, given the depth and potential of its own market.
He congratulated AIHN President Kemi Awodein, the association’s past presidents, executive committee members and its wider membership on reaching the 30 year milestone.
THE ISSUES
Nigeria’s ability to fund business expansion and public projects depends partly on how effectively its capital market connects organisations seeking funds with investors willing to provide them.
Stronger coordination among market institutions could help improve access to funding and make the process of raising capital more efficient. However, collaboration alone does not guarantee increased investment. The availability of suitable investment opportunities, investor confidence and the cost of raising funds also matter.
Cross border links among African exchanges could provide businesses with access to a wider investor base. The practical benefits would depend on how effectively participating markets connect investors and issuers and address barriers to investment.
WHAT’S BEING SAID
“They have helped transform financing needs into investible opportunities, supported enterprise and contributed to the development of a more sophisticated financial system.” – Dr Umaru Kwairanga, Group Chairman, NGX Group
“I encourage the association to continue strengthening the standards of professionalism, innovation and collaboration that have underpinned its contribution to the market.” – Dr Umaru Kwairanga, Group Chairman, NGX Group
“Our task is not simply to preserve what has been built over the last three decades. It is to build a market that is deeper, more accessible and better equipped to meet the financing needs of the economy in the decades ahead.” – Dr Umaru Kwairanga, Group Chairman, NGX Group
WHAT’S NEXT
Kwairanga urged AIHN and other capital market stakeholders to build on the association’s three decades of work by strengthening professionalism, innovation and collaboration. He also called for closer links among African capital markets. The statement did not specify new initiatives, implementation dates or funding targets.
BOTTOM LINE
Kwairanga wants Nigeria’s capital market to mobilise more long term funding by improving cooperation among market participants and widening access to investors. Stronger African market links could also expand financing opportunities for businesses across the continent.
NAN
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