LAGOS- Mrs Oluwatoyin Sanni, the Group Chief Executive Officer, UBA Capital Plc, has called for regulatory synergy among the different arms of financial markets and industry regulators to avoid a crash of the nation’s capital market.
Sanni made the statement at a two-day workshop organised by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos.
She spoke on the theme: “Sustaining Capital Market Recovery”.
Sanni said that the Securities and Exchange Commission, the Nigerian Stock Exchange, the Central Bank of Nigeria and Pension Commission should work together for market development and sustainability.
Sanni said that the regulatory synergy was imperative for sustained market development and prevention of regulatory lapses experienced in the past.
She stressed the need for development of world-class infrastructure and introduction of risk management system by all market operators to ensure stable capital market growth and development.
Sanni urged the Federal Government to ensure listing of privatised entities to promote market liquidity and increased depth.
According to her, capital market stakeholders must take steps to develop and resuscitate the Nigerian capital market.
She said that Pension Fund Administrators (PFAs) investment guidelines must be updated to ensure full utilisation of the capital market.
Sanni said that poor participation of PFAs contributed to the liquidity squeeze in the market, adding that PFAs exposure in the equity market was below 15 per cent.
She said, “PFAs have the opportunity to greatly increase their equity exposure.”
She also that increased PFAs involvement would encourage initial public offering market with increased absorption capacity and improved capacity.
Sanni attributed the persistent market downturn to depressed investor confidence, fiscal authority, austerity measures, falling reserve and pressured naira, and liquidity squeeze in the financial markets.
She said that fewer products and lack of diversification options contributed to development in the nation’s capital market.