The Chartered Institute of Bankers of Nigeria (CIBN) has put forward several recommendations to deepen the country’s capital market, including the promotion of alternative securities markets and investor education.
These suggestions were among five strategies presented by Dr. Ken Opara, President/Chairman of the CIBN Council, during the Securities and Exchange Commission/Senate Committee on Capital Market Retreat held in 2024.
Dr. Opara emphasized the importance of enhancing regulatory frameworks, developing market infrastructure, promoting investor education and awareness, strengthening corporate governance and transparency, and enhancing the Alternative Securities Market. The Alternative Securities Market, known as ASeM, is specifically designed for local emerging and small businesses that actively trade on the Nigerian bourse.
During his presentation, Dr. Opara stressed the need for continuous review and strengthening of regulatory frameworks, streamlining regulatory processes, and ensuring compliance with international best practices. These measures would not only protect investors and ensure market integrity and transparency but also inspire confidence among stakeholders and attract new investors while retaining existing ones.
Improving the infrastructure of the capital market was another key recommendation highlighted by Dr. Opara. He explained that enhancing market efficiency would lead to reduced transaction costs and mitigate settlement risks, ultimately attracting more investors and issuers.
In addition, Dr. Opara emphasized the significance of corporate governance practices and the enhancement of the Alternative Securities Market in fostering investor confidence and market credibility. These measures would also facilitate the access of small and medium-sized enterprises (SMEs) to the capital market, enabling their growth and development.
The event, attended by prominent figures such as Senator Abba Moro, the Senate Minority Leader, Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, Mr. Lamido Yuguda, Director General of the Securities and Exchange Commission, and Mr. Amos Azi, Chairman of the Investments and Securities Tribunal, provided a platform for discussions on strengthening Nigeria’s capital market.
Via Punch.
