BY VICTORIA ONU, ABUJA
THE Federal Government has been told to develop the capital market to accelerate economic growth and tackle the infrastructural challenges limiting the potentials of the nation.
The Chairman, House of Representatives Committee on Capital Market and Other Institutions, Babangida Ibrahim, said this during a visit to the Lagos Commodities and Futures Exchange on Wednesday.
Ibrahim said the lawmakers decided to visit the Exchanges to understand their workings in a bid to provide legislative support where necessary.
The Chairman said capital markets broadened access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and wealth distribution, providing capital to Small and Medium Scale Enterprises, and catalysing housing finance.
The lawmaker added that the capital market was a critical sector which contributed immensely to macro-economic and financial system stability by fostering the diversification of economies and raising their capacity to absorb volatile capital flows.
“Our purpose is to visit most of the Exchanges and understand how they operate snd see if there is any parliamentary intervention we can provide. The only way to save the economy is through capital market activities,” he said.
Speaking on the issue of unclaimed dividend, Ibrahim said the National Assembly was committed to supporting investors in ensuring that they received the benefit for investing in the capital market.
In his remarks, the Director-General of the Securities and Exchange Commission, Lamido Yuguda, described the development of a vibrant and efficient commodities trading ecosystem as a major driver of economic growth and development.
Yuguda assured that the regulator was committed to working with the Exchange to grow the commodities market.
He said, “This visit is a demonstration of the commitment both the legislative arm of government and the regulator have to the development of the capital market of which the commodities market is important
“We are impressed with what we have seen here today. We have engaged them for the past one year and are aware they have been working hard to make this Exchange successful.”
He said the Commission was willing to work with LCFE to develop all the rules needed to realise the potentials of the country in the area of commodities trading, adding that the responsibility of SEC was to ensure good market development, fair trading and investor protection.
He added, “We are working to get appropriate rules that will enhance the operations of the Exchange. In a bid to ensure the relevant standards required are approved by the SON, we are engaging them and pulling our weight to ensure increased visibility of our commodities in the international market.
“We need to get the foundation right and we are ready to assist you in any way to ensure that we get this right, as this will lead to a more vibrant economy for us in the years to come.”
Speaking earlier, Chairman of LCFE, Onyenwechukwu Ezeagu, said there was a need to fully realise the potential of the Federal Government’s drive towards the development of the agricultural and solid minerals sector and to tap opportunities brought about by the initiative to establish a Commodities and Futures Exchange.
He expressed optimism that the Exchange would be well positioned to support the Federal Government’s plan to create wealth and enhance flow of foreign currency.
Ezeagu said the Exchange would redefine practice standards of the Nigerian commodities ecosystem and give hope to producers of commodities who were constantly searching for ways to offload and improve on their commodities.
