EXPERTS RENEW CALL FOR ALTERNATIVE CAPITAL FORMATION

Written by on February 26, 2019

Experts have renewed call for the creation of alternative pool of capital formation aside the pension fund in the market, to accelerate stock market growth and mobilize savings for liquidity post-elections.

The experts during an interview argued that the market is currently in dire need of other capital structure such as securities lending, control marginal lending, market making, and stabilization fund, if it must sustain post election rally.

Furthermore, they pointed out that given the risk and caution attached to pension fund management, another big pool of capital becomes imperative to enable the nation’s capital market compete favorably in the global market.

The President, Nigerian Stock Exchange (NSE), Abimbola Ogunbanjo, recently noted that despite the achievement in the pension industry, which is reputed as one of the fastest growing in Nigeria, there is still a lot of ground to cover.

He added that the ratio of Nigeria’s pension assets to the gross domestic product (GDP) hovers around seven per cent, compared to other African regional hubs like South Africa, and Kenya, whose pension assets to GDP is at 52 and 40 per cent respectively.

 


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