Goddy Egene
The strengthening of corporate
governance and risk management across stakeholders’ groups, enforcement
of rules and regulations without exemptions, but heavy sanctions for
infractions are ...
among factors that will drive investor confidence in the
nation’s economy and capital market in particular.
An economist and financial expert, Dr.
Abiodun Adedipe, stated this while speaking at the 8th annual
conference, investiture of fellows and induction of associates of the
Institute of Capital Market Registrars (ICMR) in Lagos recently.
Adedipe, who is also the Managing
Partner, B.Adedipe Associates Limited, spoke on “Strategic options to
drive investor confidence-The role of stakeholders.”
According to him, a high sense of
responsibility on the one hand and commitment to ‘project Nigeria’ on
the other hand by all and sundry are the twin requirements for
sustainably building investor confidence, and thus attracting the
desired quantum of investments that will grow the Nigerian economy
sustainably and inclusively.
He explained that investor confidence
would be enhanced by robust policy environment with clearly defined
rules and regulations, along with strict observance of the rule of law
and sanctity of contracts.
“There should be constantly review and
update market infrastructure to improve the convenience and ease of
investment (doing business). Regulatory co-ordination should be
strengthened to pre-empt regulatory arbitraging, within and across
borders. There should regular engagement of policy makers and regulators
with operators. There should be provision of more incentives for
creative and innovative initiatives that foster market development,
while professional bodies like the ICMR should promptly issue policy
papers and professional opinions when issues bordering on investor
confidence arise, no matter the parties involved,” he said.
According to him, whatever therefore,
every stakeholder group does to strengthen governance, transparency,
compliance, competitiveness and positive promotion of the Nigerian
capital market is desirable.
“This is more so in a pre-election year
that we are in, along with the promise of more robust investment
environment in the 2020’s. This is the best time to position for the
impending wealth creating opportunities,” he stated.
In his speech, the President/ Chairman
of Council, ICMR, Mr. Bayo Olugbemi said if all organisations in the
market as profitably managed, the impact on investor confidence will be
positive.
He noted that as political gladiators
strategise in their preparations for the 2019 general elections,
governance is gradually taking the back stage and the stock market is
feeling the impact from investors who cautiously watching events.
“If this seemingly ominous trend continues, investor confidence will continue to be on the decline,” Olugbemi said.
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