The executive vice president, Alpha Africa Advisory Limited, Mr Mustapha Chike-Obi, has advocated for at least an investment of 30 per cent of the Gross Domestic Product (GDP) in infrastructure annually in creating a sustainable economic growth
Chike-Obi, who made this known at the Investiture of the ninth president of the Chartered Institute of Stockbrokers (CIS), Mr Oluwaseyi Abe, in Lagos, explained that this was being done in countries like Indonsia and India, and if Nigeria could apply this capital formation, it would move the economy forward.
Chike-Obi, who spoke on: “Growth, the Only Nigeria’s Imperative,” canvassed for massive investment in infrastructure either through savings or borrowing at a very low rate.
“We can borrow to finance infrastructure. Government must use its balance sheets creatively. 60 per cent of GDP in the United States in guaranteed Nigeria can create Federal Guaranteed Agencies that are allowed by law.
“This system makes it easier for banks to lend money. It also encourages foreign investors to come to a country. What we have currently in Nigeria is currency-adjustment inflation. By this currency adjustment inflation, a pensioner have lost about two-third of his pension,” he said.
Speaking on the Nigerian capital market, Chike-Obi explained that the market trades about $10 million worth of securities daily but has capacity to do more, saying that the issue of market liquidity must be addressed without further delay.
While the president of CIS, Mr Oluwaseyi Abe, explained that the capital market would continue to be the main driver of the economy.
“The importance of the financial system cannot be over emphasised. It is the axle on which the wheel of the economy revolves. A robust financial system engenders a stable macro-economy.
“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,” said Abe. He assured the capital market regulators and operators of his administration’s resolve to initiate and implement policies that would bring about a turnaround of the capital market