BUSINESS

ICAN president urges governments to embrace capital market, strengthen judiciary

Maureen Ikpeama8 months ago8 months ago15412 mins

…Cautions against excessive borrowing

The 50Th President of the Institute of Chartered Accountants of Nigeria ( ICAN) Chidi Ajaegbu has urged government at all levels to embrace capital market in their long term infrastructural development , strengthen the judiciary, noting that lack of effective rule of law results to weak contractual enforcement and procurement capacity .

He made the call on Wednesday at the maiden edition of the Public Lecture / Colloquium organized by the Department of Accounting and Finance of Godfrey Okoye University, Enugu.

Ajaegbu stressed the need to strengthen the judiciary in order to ensure accountability in budgets and project executions, as well as identifying infractions and non-performance through effective monitoring and evaluation.

He also cautioned governments against excessive borrowing, saying, ” excessive borrowing by governments undermines investors’ confidence in the economy.

Pix: Ajaegbu

The ICAN president noted that governments need to be careful the way they borrow money projecting that by the way federal government borrowed money, there would be devaluation of Niara in 2027.

” This government is not doing well with loans. There will still be devaluation I can’t see any government that is so tied to borrowing,so, I project they will devalue the niara in 2027 after election.

Citing Lagos as an example of state that embraced capital market in it’s long term infrastructural development, he urged other states to do same.

In his presentation, the Keynote Speaker and the Director-General of the Securities and Exchange Commission (SEC) Dr. Emomotimi John Agama described the Theme of the workshop, “Harnessing the Capital Markel for Catalyzing Infrastructure Development and Economic Transformation in Nigeria Prospects, Challenges and Roadmaps” as timely .

Represented by Francis Okafor, Agama noted that the capital market has proven its capacity to mobilize long-term funds for strategic sectors.

“The recent recapitalization of the banking industry, which raised over N24.342 trillion, is a testament to this potential. The insurance sector is preparing to follow suit, while other industries-telecommunications, oil and gas, and technology-are increasingly turning to the market to finance expansion and innovation”, he said.

SSG, Prof Onyia

According to him, the market offers specialized instruments such as Infrastructure Bonds, Green Bonds, Blue Bonds and Sukuk, (Non interest Finance) which are tailored to support sustainable development. ’Sub-national governments have also begun to utilize these instruments to finance critical infrastructure”, he said.

Agama called on the Enugu State Government and other state governments, Local Governments and their agencies to engage with the Commission and take advantage of the simplified procedures now available under the new law.

He said the federal government has demonstrated a clear commitment to repositioning the Nigerian economy.

“One of the most significant steps in this direction is the enactment of the investments and securities Act,2025. A landmark legislation that has already begun to reshape the contours of our capital market.

VC, Rev Fr Prof Anieke, Speaker Ugwu(3rd R) Hon Ekwueme(2nd R)

“Within a short span of six months , we have witnessed a remarkable transformation in investor confidence and market performance, with the All-Share Index rising to an impressive N39.049 trillion.The Nigerian capital market stands as a strategic platform for mobilizing resources, financing infrastructure, and driving economic transformation”, he said.

In his presentation, the Lead paper presenter and President , Capital Market Academics of Nigeria Prof Uche Uwaleke observed that the level of awareness of capital market in Nigeria , especially in the South East is low. He called for more public enlightenment , expressing the hope that people of the South East, companies and governments will embrace capital market.

In his goodwill message, the Governor of Enugu Dr Peter Mbah, represented by the Secretary to the State Government,Prof Chidiebere Onyia said Enugu state Government has a lot of projects and had set out a target to grow the state’s GDP from 4.4billion dollars to 30billion dollars . This according to him, requires an engagement with the private sector to gather capital to build the infrastructure and to explain how women can access capital credit and have access to the market to grow the economy.

VC ,Rev Fr Prof Anieke

Declaring the event open, the Vice Chancellor of Godfrey Okoye University,Rev Fr Prof Christian Anieke said the University is known for it’s ICAN- based program. He said the capital market is a huge one and it’s space appears to be endless. He urged the students and staff to be attentive and acquire knowledge outside the classroom.

In his opening remarks, the chairman of the occasion and Speaker, Enugu state House of Assembly , Rt. Hon. Uche Ugwu said infrastructure is the backbone of growth. Infrastructure is the engine that converts investment into productivity, jobs and improves living standard.

Speaker, Rt. Hon. Uche u6

He noted that Nigeria lacks basic infrastructure and to close the gap, it requires long term domestic finance solutions , which calls for Capital market.

Ugwu added that Capital market offers more durations and funding models that can stand the test of time and stimulates economic growth. .

In his address, the Head of Accounting & Finance Department , Dr. Odo John . (Assoc Prof) said the department in exercise of one of the mandates of the university in community service revenue, “discovered a huge gap in the capital market particularly in the South East where an infinitesimal percentage of business ventures are listed in the Nigeria Stock exchange hence the need for this public lecture.”

He said Capital market remains a vital tool for economic growth by channeling savings from investors to businesses and government for long term projects while also providing liquidity for investors and platform for risk management. It helps to fuel economic development by funding business expansion, creating jobs, and facilitating the efficient allocation of resources.

Earlier in a welcome address the

Chairperson, Organizing Committee, Prof Uche Onyekwelu, said the theme of the colloquium was a clarion call for society, government, corporate organizations, and household to take urgent and decisive steps toward leveraging the massive potential of the capital infrastructural development and economic transformation.

She emphasized that being intentional and actively participating in the capital market will not only crystallize into more capital formation for existing businesses, but will create stronger grounds for sustainability, risk diversification, and economic integration.

According to her, they intend to make the colloquium an annual event. It is a convergence of leaders and policy actors committed to stimulating discourse and action for Nigeria’s rebirth-one that is inclusive, sustainable, and driven by innovation.

“The capital market, as we all know, remains an indispensable instrument activation, fiscal reforms, infrastructure renewal, and an intensified commitment to the Sustainable achieving this transition.

“As scholars, we are concerned that many enterprises in the South East remain unlimited heavily on sole proprietorship funding models. This limits their access to long-term , hinders intergenerational sustainability. There is also a persistent information gap understanding among local business owners of how the capital market can serve as expansion, risk management, and liquidity creation”, she said..