THE FEDERAL government
has explained that the
outstanding N2.2 trillion budget
deficits could be effectively
financed through the instruments
in the capital market.
Chiefb executive of the Nigerian
stock exchange, NSE Mr. Oscar
Onyema stated this while
appraising the performance of
the stock market in 2015 and
making projections for 2016.
According to him, “The capital
market has an opportunity to
effectively finance the FGN’s
proposed budget deficit for
2016 and the implementation of
its Medium Term Expenditure
Framework, MTEF.”
He emphasised that the stock
exchange exists to provide
a platform for financing the
economy from equity and fixed
income perspective and other
asset class perspective, adding
that the NSE will focus on
executing its strategy in order
to continue to provide a credible
platform for financing the
economy.
“To this end, we intend to
intensify engagement efforts
with the federal government.
We have also prioritised three
initiatives for 2016 aimed at
achieving the Exchange’s three
strategic objectives of increasing
the number of new listings across
five asset classes; increasing
order flow in the five asset
classes; and operating a fair and
orderly market based on just
and equitable principles,” he
affirmed.
“We are trying to position
ourselves to be a credible platform
for financing the economy. And
so, given that we are frontier
market, the government typically
will have an inordinate influence
on the economic activities and so
putting ourselves in a position
to be a platform to finance
government deficit, for instance
is something that we certainly
will like to do,” he observed.
Moving along in the New Year,
he said that the NSE would ensure
that state-owned enterprises that
are supposed to be listed are
brought to the market to unlock
liquidity for the government. “So
we want to continue to help to
finance economic activities both
from the private sector side and
public sector side.” He said


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