Nigerian capital market viable for infrastructure funding, says Itagboje

CONTRARY to insinuations that the nation's capital market is not viable enough to fund capital projects due to unprecedented lull witnessed in the stock market, the President, Chartered Institute of Stockbrokers, Mike Itagboje, has, reaffirmed that market is vibrant to finance infrastructure and other long-term projects.According to him, infrastructure development is a long-term project which requires mobilisation of long-term fund, noting that this can only be generated through the capital market.Speaking on the theme of the conference: 'Addressing Infrastructure Challenges in Nigerian Economy: The Capital Market Solution,' he explained that one of the major function of the capital market is to mobilise funds from areas of surplus to areas where they are needed while submitting that the current revenue generation can not handle infrastructural demand of the country.He added that the market is capable of generating economic activities that exceeds the revenue generated in Nigeria.'The market is bigger than the nation because the boundaries are not limited to Nigeria. So if you want to develop any infrastructure take for instance the railway, the railway requirement is bigger than what the present revenue can handle but can still be developed through funding from the capital market.'This is because the capital market mobilises fun from areas of surplus to areas where thy are needed and Nigerian infrastructure is looking for funding, long term funding and the capital market on the other hand is looking for investment grants to finance.'He said the conference which is slated for Wednesday October 19, 2011 in Edo State would attract key dignitaries and participants in the financial industry both in the local and international level.'The conference is coming at a time when Nigeria infrastructural need is at the front burner. We are looking at how the market can provide good avenue for funding this infrastructure, we are looking at the international aspect of it so that they can share their experiences and tell us how it is done outside.'It has been a tough year for stock brokers, they need to relax and come back for a brighter look. There, we would look at the stock market, why prices are at free fall and see solutions that we can proffer to bring back investors' confidence.'On the government side, we believe in the key issue of addressing infrastructure and come out with suggestions, government would be happy we had the conference. We would come out with something workable that we can implement with the relevant personnel in the government.
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