23 November 2012

Nigeria: Sanusi Says Strong Capital Market Crucial for Economic Development

Malam Sanusi Lamido Sanusi, the Governor of Central Bank of Nigeria (CBN) says that the nation's economy would not experience meaningful growth without the capital market.

Sanusi stated this in his Lagos office during a courtesy visit by members of the Chartered Institute of Stockbrokers (CIS).

He said that the nation's economy would not recover fully until the capital market was given its place as a long-term financial provider.

According to him,"without a very strong and deep capital market the economy will continue to depend on banks for investment funds".

Sanusi noted that commercial banks lacked what it takes to provide long-term loans required for economic development.

"The capital market becomes handy in the provision of the needed funds for growing the economy," Sanusi stated.

He however, expressed optimism that the market would bounce back in 2013, noting that every capital market downturn takes an average of three years to recover.

He called on the CIS members to use the occasion of their forthcoming National Workshop as an avenue to discuss on issues that would stabilise national growth and facilitate further deepening of the market.

On stockbrokers forbearance package, Sanusi said that everybody who have lost money through margin loans and trading have to bear their losses.

"We are of the opinion that capital market operators, the banks and AMCON should all take a portion of the losses so that the market can move forward", he said.

Earlier in his address, Mr Ariyo Olushekun, the President of CIS, commended the governor for his effort to stabilise and grow the nation's economy.

Ariyo said that the banking sector transformation and establishment of a monetary regime that engendered relative stability in the macro economy were commendable.

The News Agency of Nigeria (NAN) reports that the aim of the visit was to intimate Sanusi of the First Annual National Workshop of the CIS slated for Dec.11.


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