Investors blame government for slow capital market development

• Seek investment in critical infrastructure, institutions

Capital market investors have blamed the government for the slow pace of the development of the nation’s capital market.

The experts, who spoke in separate interviews, said the government has not invested in developmental projects, critical infrastructure, and institutions responsible for developing the market.

The President, Standard Shareholders Association, Godwin Anono, said there is no visible evidence of government funding in the development of the Nigerian bourse.

According to him, the government has failed to motivate institutions responsible for market development, provide the necessary funds, and ensure they have proper logistics that could enable them to carry people along.

He noted that the apex capital market regulator, the Securities and Exchange Commission (SEC), is not properly funded to develop the market and boost investors’ confidence.

He added that when the government invests in the stock market, it is invariably promoting the economy’s productive base.

An independent investor, Amaechi Egbo, argued that the government has not provided an enabling environment and adequate infrastructures like constant power supply, good road network, and clean water supply that would attract investment into the country.

He decried the poor security system, which he said is capable of discouraging prospective foreign investors.

Egbo expressed optimism that if the government could provide an enabling environment, the rate of foreign investment inflow would increase significantly.

He said: “Government needs to address its domestic issues so that we can stand a chance of selecting foreign investors, and rejecting those that will not add value to this economy.

“What we have now in the guise of foreign investors are those who ordinarily know that their returns will be out of proportion to the risk they are taking. They offload their stake in the market immediately if there is any little crisis.”

In addition, he stressed the need for the political leaders to guard their utterances as well as desist from statements capable of eroding investors’ confidence in the market

“The market operates within the economy. Our leaders must re-assess themselves, their utterances and positions, and avoid nasty comments about the economy.

“This is one of the major ways we can attract investment that would help reposition the market and make it grow in a sustainable manner,” he said.