Business
Capital Market Inertia: Bank Boss Blames FG
The Managing Director, First Bank of Nigeria, Mr Olabisi Onasanya, has said that the reluctance of government to intervene in the capital market had impacted negatively on the market.
Onasanya said that the rebound of the market would depend on the speedy intervention by the federal government as was done in the banking and aviation sectors.
Reports say that Onasanya made the remarks at the eight annual Pearl Awards Public lecture on capital market development in Lagos.
In his lecture titled “Rejuvenating the Nigerian Capital Market for Sustainable Growth and Global Competitiveness: Issues, Challenges & Options”, Onasanya said that the capital market needed forbearance on the debt owed by operators.
According to him, the forbearance at concessionary rates, would still be inadequate to address the over N300 billion operators’ debt overhang.
He also suggested the deepening of the Exchange’s product offerings, adding that shallowness and lack of breath contributed to the problem of the market.
“There is a strong requirement to strengthen the Exchange’s investor education and awareness function, especially for retail investors to ensure a more viable market,” he said.
Mr Tayo Orekoya, Chief Executive Officer of Pearl Awards Nigeria, said that stakeholders should chart a new course for speedy recovery and sustenance of market development.
Orekoya said that investor confidence in the market was still low in spite of concerted efforts being made by regulatory authorities to revive the market.
Reports say that Pearl Awards project was instituted in 1995 to recognise and reward quoted companies for operational excellence and outstanding performance in the capital market.
It is designed primarily to spur competitiveness and excellence amongst quoted companies, thereby enhancing vibrancy, growth and development of the Nigerian capital market.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.