Mr Olabisi Onasanya, the Managing Director, First Bank of Nigeria, on Thursday 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 for the banking and aviation sectors.
The News Agency of Nigeria (NAN) reports 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.
NAN reports 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.