Capital formation key to $1tn goal, CIS tells FG

The Chartered Institute of Stockbrokers (CIS) has called on the Federal Government to implement urgent economic reforms to reposition Nigeria’s capital market as a key driver in achieving the nation’s $1 trillion economic target.

In a statement released on Monday, CIS explained that the call followed a one-day workshop held at the State House Conference Centre, Aso Rock, Abuja, themed “Capital Formation in Nigeria: Empowering Industry, Institutions, and Markets to Drive a $1tn Economy.”

The Institute emphasised the need for deliberate and coordinated actions to deepen capital formation across all sectors.

Coordinated Policy Actions Needed

According to the communique — jointly signed by CIS President and Chairman of Council, Oluropo Dada, and Registrar/Chief Executive, Ayorinde Adeonipekun — the Federal Government must lead in strategically coordinating market players to harmonise fiscal, trade, and monetary policies.

The Institute stressed that such alignment is critical to boosting investor confidence and attracting long-term capital.

It noted that:

• Foreign direct investment inflows remain volatile due to currency risks, regulatory unpredictability, and infrastructure gaps.

• Domestic capital mobilisation through pensions, insurance, and retail investors is still underutilised for industrial financing.

• Integrating Nigeria’s informal sector into the formal economy could unlock vast domestic capital while expanding the national tax base.

Tapping New Capital Sources

CIS further highlighted the need for:

• Well-structured financial instruments to capture diaspora savings and remittances.

• A national savings strategy to channel local funds into productive sectors.

• Prioritisation of infrastructure development through public-private partnerships (PPPs).

Strengthening Market Confidence

The Institute also called on capital market regulators to take advantage of the upcoming Investment and Securities Act (ISA) 2025 to:

• Strengthen corporate governance,

• Enhance disclosures, and

• Improve dispute resolution mechanisms.

At the same time, market operators were urged to innovate and scale diverse financial products that appeal to different investor groups — including millennials, Gen Z, and Gen Alpha. These could include real estate investment trusts (REITs), venture capital, and long-term infrastructure funds.

With these reforms and innovations, CIS maintained that Nigeria’s capital market could be repositioned as a critical driver of sustainable growth and the Federal Government’s $1tn economic ambition.