CIS Advocates Stronger Institutions, PPPs for Economic Expansion

The Chartered Institute of Stockbrokers (CIS) has urged the federal government to implement urgent economic reforms aimed at strengthening institutions, harmonising fiscal and monetary policies, and leveraging public-private partnerships as part of efforts to accelerate Nigeria’s path toward a $1tn economy.

In a communiqué issued after the institute’s workshop, it stressed that Nigeria’s trillion-dollar ambition is attainable, but only through deliberate and coordinated actions to deepen capital formation across industries and institutions.

The event, themed “Capital Formation in Nigeria: Empowering Industry, Institutions, and Markets to Drive a $1tn Economy,” brought together key policymakers, industry leaders, market operators, and financial experts to chart practical strategies for sustainable economic expansion.

The communiqué, jointly signed by CIS President and Chairman of Council, Oluropo Dada, and Registrar/Chief Executive, Ayorinde Adeonipekun, identified weak institutions, inconsistent policies, and underdeveloped financial markets as major impediments to capital mobilisation.

It urged the Federal Government to provide strategic leadership in coordinating market stakeholders to harmonise fiscal, trade, and monetary policies in order to build investor confidence and attract long-term capital inflows.

According to the stockbrokers, while investor appetite is evident in the consistent oversubscription of government bonds, foreign direct investment (FDI) inflows remain volatile and below potential due to currency risks, regulatory unpredictability, and infrastructure gaps.

They added that domestic mobilisation of funds through pensions, insurance, and retail participation is still underutilised, despite its critical role in financing industrialisation and infrastructure development.

The institute also underscored the need to integrate Nigeria’s vast informal sector into the formal economy to unlock significant domestic capital and expand the tax base.

It warned against overreliance on debt financing, calling instead for increased venture capital and private equity investments to stimulate innovation and support startups across strategic sectors.

On diaspora financing, CIS noted that Nigeria has yet to fully harness remittances and savings from its diaspora community. It recommended the introduction of well-structured financial instruments tailored to attract diaspora funds as a means of boosting capital inflows and supporting national development goals.

The communiqué further emphasised the importance of a unified and transparent foreign exchange (FX) regime that enhances liquidity and ensures ease of capital repatriation for foreign investors.

It also called for a national savings strategy to mobilise idle local funds into productive sectors such as manufacturing, technology, and infrastructure.

In addition, CIS urged government and regulators to streamline approval processes to encourage innovation, including fintech integration, and to strengthen investor protection through strict enforcement of corporate governance, enhanced disclosures, and efficient dispute resolution mechanisms under the newly enacted Investments and Securities Act (ISA) 2025.

The Institute also encouraged pension and insurance companies to diversify their portfolios into long-term investments such as infrastructure funds and equities through robust risk frameworks.

Market operators, it added, should scale up innovative products such as Real Estate Investment Trusts (REITs), venture capital funds, and instruments that appeal to younger generations, including millennials and Gen Z.

While acknowledging the progress made by the government in driving reforms, CIS reaffirmed its role as a hub of thought leadership in policy advocacy and capital market development.

It, however, urged securities dealers to uphold the highest ethical standards, placing investor confidence at the centre of professional conduct to ensure sustainable growth of the Nigerian capital market.