Nigeria: Stockbrokers want capital market funding for power sector

Prof Chinelo Nebo23 October 2013, Lagos – Stockbrokers are making efforts to ensure the deepening of the nation’s capital market so as to facilitate the funding of power, energy and housing sectors.

There are reforms and transformation in those sectors, especially in the power and energy sectors, following the sale of government’s assets to private operators.

The private operators who bought the assets will require huge funds to operate successfully and it is believed that the capital market is a suitable source where long-term funds could be accessed for that purpose.

Consequently, the Chartered Institute of Stockbrokers (CSI), which is the professional umbrella body for stockbrokers in the country, will later this month, at its yearly national conference, focus on how the capital market can finance the power, energy and housing sectors among others.

Chairman, Organising Committee of the CIS 2013 Annual Conference, Mr. Olu Abayomi-Sanya, said in line with the CIS past contributions to national discourse and finding solutions to economic issues, the conference would focus on how the capital market could fund the power, energy, oil and housing sectors.

According to him, this year’s theme is “Power, Housing, Energy &Oil Challenges: Capital Market Solution,” noting that efforts would be made to attract significant portion of N3.8 trillion pension assets to the market so that companies could access the funds for their operations.

“Since the capital market is the bedrock of the economy, we want to portray what the market can offer to the economy and how toleverage the capital market. Power, anywhere in the world is capital

intensive. The only place where the money can be generated is the capital market. Today we have a vibrant capital market where the power sector can source long-term funds,” Abayomi-Sanya said.

He added the N3.8 trillion pension assets that would sit idle in the banks would be mobilised to the capital market and be made productive, noting that the brokers and other participants at the conference would unveil various ways companies could access long-term funds from the capital market.

He said: “If a significant portion of pension assets is invested through the capital market, it would be used to finance capital intensive projects and grow the economy. The funds will deepen the market, generate more activities, as well as boost the bottom line of the companies. PenCom is actually looking for workable instruments in Nigeria because the PFAs are not allowed to invest abroad. It has to be local which is very good. We are thinking of creating products in the market. And at the conference, these would be discussed. He said the conference, would hold from October 30 to November 1, 2013, and would attract speakers from Nigeria and outside the country.

– Goddy Ngene, This Day

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