'INEFFECTIVE REGULATION RESPONSIBLE FOR MARKET RECESSION'
Abdullahi, who spoke at the sixth annual pearl awards public lecture for capital market development, said that the regulatory authorities in the Nigerian capital market should come up with a broad based reform for market operators, especially the stock broking firms.
He said, 'It is our considered opinion that if such reform is effectively pursued to its logical conclusion, it will go a long way to strengthen the capacity base of the operators and make them internationally competitive as witnessed in the banking sector.'
He suggested that the regulatory authorities in the capital market should also consider further downward review of the various charges attached to stock transactions as a palliative measure to encourage investors, who hitherto had lost confidence in the market.
'The capital market as the bedrock for economic growth in any country must provide the necessary platform for sustainable economic growth in Nigeria through various supportive measures to other sectors of the economy,' he noted.
Abdullahi blamed the government for its inability to plot a bail out option during the crucial period of the recession.
According to him, 'The refusal of government to intervene directly in the crashed stock market led to further loss of confidence among investors.'
On the imminent succession of the position of the Director-General of the Nigerian Stock Exchange, he said, 'The NSE must take the lead in ensuring that good corporate governance takes root in the capital market. This the exchange must demonstrate by ensuring that transparency, fairness and equity underscores the succession to the position of the chief executive of the Exchange to be vacated in the next few months by the incumbent.'
He, however, said that the collaborative efforts of regulators, operators and indeed all stakeholders in the stock market was central to finding a lasting solution to the crisis in the market and restoring investors' confidence at this critical period.
He also noted that, 'The idea of integrating the West Africa Stock Market is a welcome development that will help to move the Nigerian capital market forward through strategic partnership.
'The benefits of regional integration in a globally competitive market cannot be over emphasised. Nigeria as one of the emerging economies in the world cannot afford to be left out from this remarkable initiative.'