The Senate has proposed a N10 billion special fund for investor education in the capital market as part of the 2025 budget.
According to the Senate, the initiative aims to raise awareness among Nigerians and attract more investors to the market.
Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, made this statement during the Securities and Exchange Commission’s budget defense session in Abuja on Tuesday.
Addressing the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, Izunaso said the capital market will play a huge role in the attainment of the $1 trillion economy as being propagated by the President saying that more people need to be attracted to participate.
He said: “The capital market is doing well, but we need to do better to attract more investors. At present, participation is low and I don’t think it is right. Also, the number of companies listed in the exchange is low compared to the companies that operate in this country.
“I believe we require special funds to finance literacy in the capital market, we need to do more to take our capital market to where it is supposed to be.
“You are going to get our letter to include a N10 billion special funding of capital market literacy in the 2025 budget. This will aid investor education and make our capital market blossom”.
Izunaso commended the Minster for all the support he has provided to the SEC in repositioning the capital market and stated that the capital market needs to be encouraged to support economic development.
The Chairman assured that the Senate will continue to support the capital market to ensure that it attains its full potential, adding that investor confidence is key to a vibrant market.
“On our part, we are doing what we can to provide support to ensure that this market performs its role efficiently in the economy. It is based on that desire that we have now repealed the ISA which is currently awaiting Presidential assent. That bill was passed in record time due to the importance of the capital market to the economy”.
In his remarks, Mr. Wale Edun said the country now has a more stable and conducive environment for investments due to President Ahmed Timubu’s key and timely decisive steps aimed at growing the economy rapidly and lifting millions out of poverty.
Edun disclosed that the stock market has started the year on a good note already, saying it is an indication of confidence and resilience that investors have in the stock market.
“There are ways in which the government can encourage more participation and savings through the stock market and the Nigerian economy has savings that can be invested.
“We have our pension accounts where salary earners and civil servants are saving every month and the government is also contributing,” he stated.
The Minister commended the National Assembly, regulators, participants and others for their support to the capital market adding “We have a lot of basis for optimism, a lot to be encouraged about and a lot to build on. The capital market will be a major driver of economic growth and development”.
