From Charity Nwakaudu, Abuja
The Association of Capital Market Academics of Nigeria, (ACMAN) has appealed with the Federal Government to quickly scale up the intervention fund earmarked for players in the micro small and medium enterprises (MSMEs) and agriculture sectors, as the amount budgeted (less than N1 trillion) was too small to realise the targeted dividends.
The body also advised President Bola Ahmed Tinubu to move speedily to ameliorate the pains brought on vulnerable Nigerians on account of the sudden removal of fuel subsidy, explaining that more money can be made available to cushion the negative impact by reducing cost of governance, plugging revenue leakages and tackling the challenge of crude oil theft.
President of ACMAN, Professor Uche Uwaleke, made the appeal, on Wednesday in Abuja, at a media briefing to mark the first 100 days of the Tinubu administration.
Uwaleke also urged the federal government to set up a Capital Market Advisory Committee (CMAC) comprising capital market experts in the finance industry and academia .
He explained that the mandate of the committee will be to provide research-based advice to the Minister of Finance on Public Private Partnership (PPP) arrangements and various financing opportunities in the capital market.
Uwaleke noted that the Nigerian economy, in recent years, has been characterised by weak growth, high inflation, unemployment and volatile exchange rates, rising public debt and fiscal imbalance compounded by CBN’s Ways and Means and a corrupt fuel subsidy regime.
He pointed out that these legacy challenges confronted the President on assumption of office and it is against this backdrop, the twin policies designed to end fuel subsidy and unify multiple exchange rates, which defined the administration’s first 100 days in office, were largely welcomed by both domestic and foreign investors and seemed to boost confidence in the economy.
He said,”Perhaps no where has this confidence manifested better than the stock market where the benchmark index (NGX ASI) hit the highest level ever in the history of the Nigerian stock market (over 68000 points) with year-to-date return now above 30 percent.
“But these reforms have left in their wake unpalatable outcomes which have made life more difficult especially for the ordinary Nigerian. Inflation rate is on the rise with food prices largely unaffordable. There is evidence of declining economic activities with fewer vehicles on the roads and reduced work days in both private and public sectors.
“Similarly, not a few micro and small businesses have reduced their scale of operations due largely to inability to afford the high cost of fuel.
“ACMAN commends a number of actions taken by the President since assumption of office notable among which are the appointment of Mr Wale Edun as the Minister of Finance and Coordinating Minister for the Economy. Mr Edun’s rich capital market background puts him in good stead to leverage the potentials of the market to facilitate the country’s economic development”, he said.