THE News Agency of Nigeria (NAN) is partnering with the National Assembly on the upcoming 2nd Capital Market Stakeholders’ Forum to create awareness on commodity exchange in the capital market.

The Managing Director, Mr Bayo Onanuga said this on Friday in Abuja when he received Mr Tajudeen Yusuf, the Chairman House of Representatives Committee on Capital Market and Institutions.

The forum, which is being organised by NASS, in collaboration with other financial institutions, is scheduled to hold on July 23.

Onaguga commended the committee for the initiative, adding “I share your views on what the National Assembly is trying to do and I commend your committee for thinking about this.

“I am sure the government will support you, and our agency is also willing to partner with your committee and to be at your forum to give all the publicity required,’’ he said.

Onanuga said that countries like the U.S. had most of their rails, roads and other structures built with bonds.

He expressed concern that Nigeria was still using bonds to pay salaries which should not be so.

“Bonds are borrowed money that should be used for development and if not properly utilised, will only leave the nation in great debt. When we keep borrowing, we are eating our future,’’ he said.

He expressed optimism that the fortunes of the country could improve if NASS does the needful through proper legislation.

Onanuga encouraged those preparing for retirement to invest in the capital market as it was one of the few ways for securing a better future.

He said as a member of the All Progressives Congress (APC), he believed that the party had provision for commodity bonds, adding that it would continue to support the capital market.

Earlier, Yusuf said he was at NAN to partner with the agency on the upcoming forum.

He said that Nigeria was over dependent on budgetary allocations for infrastructure development.

“The major source of finance for the country from the highest to the lowest infrastructure is from the budget.

“We have taken a study on the countries that are developed today, and we discovered that their growth and stability are from capital investments.

“It is on record that in 1976, Dubai approached Nigeria for a loan of N10 million and was given N2million that was not to be returned. Today, toll is being collected on every road in Dubai,’’ Yusuf said

He said it was disheartening that Nigeria had not taken advantage of capital market investments, adding however, that lack of information and wrong perception had also hindered investments in the market.

Yusuf said there was the need for Nigeria to be transparent in its transactions in the capital since money released would be through the treasury.

The committee chairman said that the first stakeholders’ forum on capital market had brought heads of capital markets and from local and international experts to deliberate on issues in the sector and a communique was compiled.

He also stressed the need for the media to sensitise Nigerians on the need to invest in the capital market, adding that 80 per cent who invested in the sector were foreigners that could pull out at any time.

“This foreign investors who I refer to as port folio investors would take their money at anytime when they don’t feel certain.

“They will usually pull out, especially during election period, just like we observed that they did in 2015 before the elections because they were afraid of uncertainty,’’ he said.

According to him, the port folio investors are neither reliable nor committed. (NAN)

– Jul. 20, 2018 @ 16:35 GMT