Worried by the high level of infrastructure deficit and inadequate government resources, former Secretary General of the Commonwealth, Chief Emeka Anyaoku has joined stakeholders calling on the federal government to utilise the Nigeria’s capital market to develop the economy.
Addressing the Principal Officers of the Chartered Institute of Stockbrokers (CIS) during courtesy call to him in Lagos, Anyaoku explained that governments in developed economies utilise the capital market to fund infrastructure projects. According to him, all tiers of government should take advantage of long term investment opportunities in the market to raise long term funds for development projects.
Anyaoku applauded the recent move by the Central Bank of Nigeria (CBN) in collaboration with the Bankers Committee to leverage Public Private Partnership (PPP) approach to bridge infrastructure gaps. The partnership was expected to commence with construction of four roads, details of which are still hazy.
Anyaoku, noted that there was a growing need for the Federal Government to mobilize private capital through the market to raise long term funds for infrastructure development.
“The capital market has important roles to play in the national economy. The managers of the capital market and the operators play pivotal roles. Developed countries did not just develop on the basis of government funding alone, but participation of the private sectors. I am happy that the CBN is collaborating with Bankers Committee on how to fund the huge infrastructure gap in PPP. Many big companies in Nigeria are performing below average because of lack of resources. The resources provided by the government is inadequate. There is need for the mobilisation of private capital to enable companies operate optimally,” he said.
Anyaoku warned against Nigeria’s adoption of common currency in the West African region saying it was too early and should not be rushed. He explained that it took European countries many years to achieve common currency and the management of fiscal policies of the member countries must be studied.