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The Association of Issuing Houses of Nigeria (AIHN) has called on the Federal Government (FG) to inaugurate the board of PENCOM just as it recently inaugurated the Securities and Exchange (SEC) board.
This, the Association said, will strengthen the governance structure of the pension industry and empower the regulator to make pending and long-overdue investment policy decisions for the benefit of the market and the economy.
Meanwhile, AIHN will Thursday evening bring together members of the association, Chief Executive of investment banks, captains of industry, investors and political leaders at its 2nd Annual Dinner and Awards Night in Lagos.
The Association also urged the FG to sustain its policies that create enabling environments for businesses to thrive and for industry regulators to play contributory roles in achieving sustainable economic growth.
Chuka Eseka, group managing director Vevita Capital Management Limited who doubles as the president of the AIHN stated while addressing financial correspondents at a conference that while the private sector plays key roles in fostering economic development, the government also needed to provide a sustainable enabling environment for businesses to thrive.
“Government must be decisive and close out on the key policy issues affecting the functioning of the economy to create the right framework for the acre to thrive”
“It is time for the capital market to invest intellectual capital and develop solutions for funding key national priorities such as power transportation and telecommunications to achieve the transformational and catalytic economic benefits,” he added.
Speaking on the proposed recapitalisation of banks by the CBN in five years, Eseka stated that the CBN has a broader view and better understanding of the economy, therefore, there are proposition and justifications for their actions.
He said that the association was prepared towards such policies as they are ready to ensure that the policy is well understood by investors, adding that the AIHN will engage in activities to convince investors to pool resources and encourage investments.
“We will work with the banks to properly define their investments story and create a unique go-to-market strategy that will aid them” Eseka said.
Speaking on economic issues regarding the interest rate, Ike Chioke group managing director, Afrinvest proposed that a single-digit interest loan is the most suitable for the economy to encourage growth and development.
He added that although some single-digit loans have been made available by the CBN through its intervention policies in its aim to improve those sectors like agriculture which can be assessed through the window of commercial banks, he advised that such action should be replicated on the other sectors as it will foster a thriving economy.
“Using sterilized funds from commercial lenders through the cash reserve ratio, the CBN provides funding risk while the banks provide credit risk, applying a single-digit interest rate to the general economy will be more beneficial to industry players as well as business owners.”
Speaking on the full super-agent licence granted by the Central Bank of Nigeria (CBN) to the Yello Digital Financial Services limited (YDFS), a subsidiary of MTN Nigeria, Samuel Chidoka, managing director Kairos Capital Limited said it is a strategic move by the CBN to encourage financial inclusion at the grassroots level, where financial services are not accessible.
“The industry is changing, crowdfunding is a means of raising money, therefore, the more access retail market has to banking services, the larger crowdfunding will reach. This will also create a platform to push investments to the grassroots level and make it accessible to everyone at the most affordable rate” Chidoka said.
The president also disclosed that the AIHN ‘s annual general meeting was to be held on Thursday, 1st of August as well as the second edition of its annual dinner and award night in order to recognise and appreciate members of the association who have made positive contributions in building the association. He added that awards would be presented to people and institutions under the industry awards, eminent people’s award and the market development award.
