I am humbled, and appreciative of my election and the confidence
reposed on me to lead the Institute for the next two years.
I recognize that leadership is serious business which among other
things, demand zeal, dedication, focus, fairness and equity. I
recognize that my election is a call to service; service to our great
Institute, the securities industry, capital market community,
financial system and economy in general.
It is instructive that my election is at a period the Nigerian economy
is in the trough, a situation which challenges our creative faculties,
and which is a task that must be done with critical thinking and
dedication in order to turn the tables.
We are determined to embark on aggressive debt recovery through
purposeful and credible actions which will require the collaborative
intervention of the regulatory agencies and the trading platform.
Finance is germane to the operation of the Institute. It is the live
wire, without which the operations of the Institute will be hampered and the pursuit of our goals and objectives will be but a fleeting illusion. But that is not what we desire for the Institute.
Also, every member is enjoined to continually bear the Institute at
heart and continue to maintain our professional code of conduct for a greater entrenchment of investor confidence which is the soul of
capital market operation.
Our profession is a noble one which is hinged on trust and integrity.
Let these virtues which are unquantifiable capital that yields great
dividends be uppermost in our hearts.
The capital market is going through challenging times, and three major factors are responsible, namely, 1. Adverse macro-economic scenario:
Prior to the recession, the GDP growth rate was contrary to the
capital market. It did not encourage investors as most people were
pre-occupied with barely feeding. 2. Negative public sentiment which is compounded by a low-level of capital market literacy, 3. Retreat of foreign portfolio investors due to the hitherto adverse fixed foreign exchange regime. But it seems there is gradual reversal, going by CBN report of an inflow of US$1 billion from foreign portfolio investments since the introduction of the flexible exchange rate.
Notwithstanding the challenges of the capital market and economy, we at CIS are not relenting. We are poised to deploy creative solutions and work in concerted efforts with other stakeholders, including the federal government, CBN, SEC, NSE, NASD, FMDQ, AFEX, NCX and others towards uplifting the capital market in particular, and the financial system in general.
The importance of the financial system cannot be overemphasized. It is the axle on which the wheel of economy revolves. A robust financial system engenders a stable macro-economy all things being equal; and the capital market is one of the most important drivers of economic growth and development. It is a major source of funding for infrastructure with strong socio-economic impact; and there is a
correlation between a robust capital market and accelerated growth.
The mechanism of the capital market among other benefits, helps to
catalyze industrial growth faster. It also helps economies to achieve
inclusive growth through greater employment opportunities, and
attracts foreign portfolio investments, which in turn, could trigger
inflows of Foreign Direct Investments, the much needed patient capital which is critical for growth and development.
The new leadership of CIS has developed some strategic initiatives to place the capital market on a stronger keel, of which communication will play a major role. The power of information and structured communication in driving financial markets is immense. We need to push communication about the capital market to the front burner.
As a result, we have structured a nationwide capital market literacy
campaign with the following key objectives:
➢ To disseminate quality information on the capital market in order to enhance the value perception of the market and boost investor
confidence which is the soul of capital market operation.
➢ To sensitize and educate industrialists, budding entrepreneurs,
owners of SMEs, governments, Trade groups and associations on the vital and strategic role of the capital market in driving economic
growth and development.
➢ To advocate a dominant market-based financing culture to engender double digit and inclusive growth.
➢ To create pipelines for Initial Public Offerings IPOs for further
listings on the stock exchange.
We will also produce a television documentary on various segments and platforms in the capital market.
In addition, we will organize series of collaborative technical
workshops with governments and strategic institutions to propagate the ideals of the capital market for policy evolution. The first in the
series of such workshops is with the National Institute for Policy
and Strategic Studies (NIPSS) Kuru, Jos Plateau State, which has been scheduled for November, 2016. NIPSS is an agency of the Federal Government which serves as the nation’s ‘’Think-tank, developing a crop of top class technocrats to drive implementation of policy initiatives critical for national development.
The new leadership will also establish a research foundation to be
known as CIS RESEARCH FOUNDATION, with the following objectives:
➢ To collaborate with Universities, Polytechnics and other external
researchers in the identification and design of collaborative research
projects on the capital market.
➢ To publish an international Journal of Securities and Investment,
articles, papers and reports for stakeholders and policy makers to aid policy evolution on the capital market and economy.
We will engage and encourage the Federal Government to show more than a cursory concern on the capital market and to use the instrument of creative tax incentives to attract more listings in the market.
The more the listings, the more the market will be integrated into the economy to truly serve as the barometer to measure the pulse and direction of the economy.
We have other strategic initiatives some of which are tailored as
short term solutions which we expect will impact positively on the
As we continue to work together, it is our belief that we will achieve
our common goal which is to maximally develop the capital market for the greater benefit of our economy.