The Joint Senate and House of Representatives committee on capital market have expressed worry over the failure of commercial banks to provide long – term financing instruments for projects in the country.
The lawmakers raised the concern while briefing the media in preparation of the second biennial stakeholders’ forum in Abuja with the theme: “Capital Market as a Catalyst for Economic Growth and Development.”
Chairmen of the committees, Senator Foster Ogola and Hon. Tajudeen Yusuf, informed that except the capital market, no Nigerian bank currently can fund long-term projects in the country.
The lawmakers explained that both chambers of the national assembly was committed to enhancing the Nigerian capital market’s potentials towards enabling it to mobilise multi- billion dollars development funds from across the globe towards a fast -paced execution of infrastructural projects nationwide.
They insisted that mobilising global funds was better than relying on government’s limited annual budgets alone and argued that it was better to borrow from the country’s capital market rather than seek foreign loans.
Ogola noted that big and long – term project financing, like industrial, infrastructural and farming projects can only come from the capital market which now has huge financial inflows from pensions and insurance deposits.
“No Nigerian bank can fund long-term projects. The capital market is now funded by insurance and pension funds. And pension and insurance deposits are now being invested in the capital market,” he observed.
Also speaking, the chairman house committee on capital market, Hon Tajudeen Yusuf, stated that the legislature was deploying legislative tools and framework to rejuvenate the capital market and to large extent develop the economy and infrastructure of the country.
Yusuf revealed that the national assembly was poised to develop the commodity exchange frameworks and make it a viable economic venture.
According to him, such development would expand commodity exchange and create commodity brokers as it is obtainable in insurance and stock market.