Capital market contribution to GDP to hit 130 % by 2024

From Ngozi Onyeakusi, Lagos

The Securities and Exchange Commission has assured to put in place measures that will boost the market capitalization contribution to the nations GDP presently from 27 per cent to 100 per cent in the next ten years.

This, acco rding to the commission will position the market to be among the top 20 capital markets in the world.

Briefing the media after the 1st quarter (centenary) Capital Market Committee Meeting in Lagos, the Director General, SEC, Miss Arumah Ote who assured that such achievement has been recorded in other countries of the world stated that to achieve the stride, the commission is working on stringent modalities which bordered on regulatory framework of the market, cost of transaction in the market, efficiency and development new products.

On regulation , she noted that commission is working on how to make the regulation effective while on the cost she said the commission had engage activities of a consultant to review issue of cost to ensure

that cost of doing business in Nigeria is in line with what is obtainable in the capital markets in other jurisdictions.

She noted that commission is also looking at equipping the market heavily to enhance efficiency adding that it comparing listing requirements in London and other markets of the world to make sure that Nigerian capital market operates in the same manner. This, she said will surely avert popular belief of the nation’s capital market characterized for dearth of efficiency.

Ote equally assured that market is working on new products which she described as indispensable measure towards promoting growth and quality of every market stressing that these and many more the commission will persistently work on to ensure that the market remain attractive to investors both local and foreign.

Highlighting achievements and challenges of the market in the last 100 years, Ote stated the market has for far recorded significant improvement in all indices.

The improvements according to her include establishment of strong regulatory frame work, establishment of medium to long capital, sophistication of the market , greater participation in the market among others.

Challenges encountered by the market within the period, according to her was the global financial crises between 2007 and 2009, which according to her the market was able to surmount adding that its effects remained an experience for the market.