The Senate has proposed a N10 billion special fund for investor education in the capital market as part of the 2025 budget as a funding support to improve public awareness among Nigerians and attract more investors to the market.
The Chairman of Senate Committee on Capital Market, Sen. Osita Izunaso, made this proposal for the provision of the amount during the Securities and Exchange Commission’s (SEC’s) budget defense session on Tuesday in Abuja.
The lawmaker, while addressing the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, on the commission’s budgetary provisions for this year, pointed out the capital market would play a huge role in the attainment of the $1 trillion economy target set by the President Bola Tinubu-led administration, saying that more people need to be attracted to participate.
Izunaso 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”, he added.
While commending the minster for all the support he had given to the SEC in repositioning the capital market, the committee’s chairman stressed that the capital market needed to be encouraged to support economic development.
He assured that the Senate would continue to support the capital market to ensure that it attains its full potential, adding that investor confidence is key to a vibrant market.
The lawmaker promised: “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 It is based on that desire that we have now repealed the ISA which is currently awaiting Presidential assent.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, the minister said the country now had a more stable and supportive environment for investments due to the current administration’s policy reforms and timely steps aimed at growing the economy rapidly and lifting millions out of poverty.
Edun maintained that the stock market had kicked off this year on a positive momentum, saying it is an indication of confidence and resilience that investors have in the stock market.
The minister explained: “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 added.
Also, Edun commended the National Assembly, regulators, participants and others for their support to the capital market, adding that “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.”
