16 November 2012

Nigeria: Sanusi Wants Capital Market Deepened

The Governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, Thursday called for the deepening of the Nigerian capital for it to play its role of providing long-term capital for infrastructural funding and take pressure off the banks.

Speaking at the 2012 forum of Bank Directors Association of Nigeria (BDAN) in Lagos, Sanusi declared that there is no way an economy that needs long-term funding for infrastructure, power, agriculture, mortgages among others, would depend only on banks.

According to him, the financial system so much depended on the banks that Nigerians only go the banks for assistance, saying that there is no way the infrastructure could developed with banks' loans.

His words: "There is no way an economy that needs long-term money for infrastructure, money for power, money for agriculture, money for mortgages, money for personal consumption, cars and others will have just one type of institutions(banks). And the banks are the only place Nigerians go for assistance.

If you want to build the roads, you go to banks. If you want to build power plants you go to banks. Depositors' funds are not for venture capital. They are not for private equities. They are not for building roads, dams and bridges. We need to see how to deepen the capital market. How the capital market can be made to contribute to the funding of infrastructure. How the pension assets can be put into infrastructure so that banks can focus on the core area of businesses," the CBN boss said.

Sanusi commended BDAN for its collaboration with regulators and other stakeholders in ensuring a sustainable banking industry in the country.

Meanwhile, trading at the stock market closed on positive note as the Nigerian Stock Exchange (NSE) All-Share Index went up by 0.04 per cent to close at 26,356, 63. Market capitalisation added N3 billion to close at N8.399 trillion.

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