On Monday the Federal Government said it would encourage
state governments to raise long-term funds from the capital market to finance
capital projects.
It said rather than the states looking at the banking
sector to raise funds, the capital market would be assisted to play its role in
economic development.
The Minister of Finance, Mrs. Kemi Adeosun, stated these
at a meeting with stakeholders in the market, led by the Chairman, Capital
Market Master Plan Council, Mr. Olutola Mobolurin.
Adeosun said the assistance to be given to the state
governments in raising funds from the capital market had been captured in the
Fiscal Restructuring Plan, which was already approved by the National Economic
Council.
She said, “There is a very aggressive plan to develop
housing; the capital market is sitting at the root of financing the sector and
we have to find a way to unlock it
“We need to create the instruments; we need to de-risk
certain sectors; we need to look at procedures. At the moment, we are working
on the fiscal sustainability plan and one of the things that we are saying to
the state governments is that we want to take you away from the banks.
“The capital market should be your natural source of
funding for your long-term projects.”
The minister lamented that currently, a lot of people had
yet to understand the capital market and what it could do for the development
of the country.
“There is a lot to be done on your part around literacy,
awareness and stakeholder engagement at every level, especially at the
political level, because I am not sure every minister truly understands what
the capital market means for his portfolio,” she noted.
Mobolurin said the visit was to seek the support of the
minister in driving the Capital Market Master Plan (2015-2025).
He explained that the capital market was usually
neglected and had not found the right attention in the government.
For your business news, visit http://businesshubby.blogspot.com/
No comments:
Post a Comment