…urges FG, States to leverage capital market for infrastructure development
BY SAM OTUONYE
Capital Market Academics of Nigeria (CMAN) has expressed concerns over widening fiscal deficits against relatively low implementation of capital expenditure, tasking federal and subnational governments to take advantage of the opportunities the capital market space presents to ramp up infrastructure development.
The foremost Capital market professional group insisted that if
FG’s $1 trillion 2030 economy target must be met enormous infrastructure development in roads, railways, ports, electricity, housing, irrigation and digital systems must be adequate.
Addressing the media in a conference on Monday June 29, 2026, in Abuja, the President of Capital Market Academics of Nigeria (CMAN), Prof. Uche Uwaleke, speaking on a theme: “The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth”, maintained that the role of the capital market in providing long-term financing for infrastructure development cannot be overemphasized.
“CMAN is particularly concerned about widening fiscal deficits and the relatively low implementation of
capital expenditure despite Nigeria’s enormous infrastructure deficit.
Roads, railways, ports, electricity, housing, irrigation systems and digital infrastructure remain
inadequate for a country aspiring to achieve a $1 trillion economy by 2030.
“This is where we believe the Nigerian capital market has an even greater role to play. Unlike commercial banks whose liabilities are predominantly short-term, the capital market provides
long-term financing that is better suited for infrastructure development. Governments should therefore
leverage the capital market more strategically to finance projects that generate long-term economic
returns.
“Currently, the Federal Government’s domestic borrowing remains heavily concentrated in conventional
Federal Government of Nigeria Bonds, which account for nearly 80 per cent of domestic debt instruments. Most of these borrowings are not directly linked to identifiable development projects.
“CMAN therefore recommends a significant increase in the issuance of project-tied infrastructure
instruments such as Sukuk Bonds, Green Bonds and other thematic infrastructure securities. These instruments improve transparency, enhance investor confidence and ensure that borrowed funds are channeled into clearly defined developmental projects with measurable economic and social impact.
“In the same vein, we advise sub-national governments, especially State governments, to increasingly
access long-term financing through the capital market instead of relying excessively on short-term
commercial bank loans to finance long-term infrastructure. Such maturity mismatches increase refinancing risks and place unnecessary pressure on state finances.
“It goes without saying that the capital market offers a more sustainable financing framework for
infrastructure that can ultimately improve productivity, reduce business costs and ensure that
macroeconomic gains translate into meaningful improvements in the daily lives of Nigerians,” Prof. Uwaleke stated.
CMAN, commended President Bola Tinubu’s administration in rolling out lofty reforms in banking, tax administration, subsidy payments, forex market, and other macroeconomic issues, but noted that the true measure of such economic reforms must be seen to improving the welfare of ordinary citizens.
“These achievements deserve commendation. They demonstrate that sound macroeconomic policies,
when consistently implemented, are capable of restoring investor confidence and improving market
performance.
“However, we are persuaded that economic success should not be measured solely by rising stock prices,
improving reserves or favourable sovereign ratings. The true measure of economic reform is whether it
improves the welfare of ordinary citizens.
“Indeed, as observed by both the World Bank and the International Monetary Fund, many of the positive
macroeconomic gains have yet to translate into improved living conditions for households and
businesses. This remains Nigeria’s most pressing economic challenge.
“Despite stronger banks and improving financial market indicators, access to affordable credit remains
extremely limited, particularly for small and medium enterprises that constitute the backbone of employment generation. Lending rates remain prohibitively high, making expansion and job creation
increasingly difficult.
“Recent reports also indicate that although Nigerian banks are becoming larger following recapitalization,
credit to the private sector as a percentage of Gross Domestic Product continues to decline. This trend
deserves urgent policy attention because sustainable economic growth ultimately depends on productive
private sector investment rather than financial sector expansion alone,” the group noted.
The group canvassed for the deepening of the capital market to make it more inclusive for both large corporates, small businesses, institutional investors, start-ups, and ordinary Nigerians to create wealth, while advocating tax rebate for listed companies.
“Nigerian capital market has demonstrated remarkable resilience
over the past two years. Beyond its impressive performance, however, the market must increasingly
become a vehicle for inclusive wealth creation, enterprise development and national economic
transformation.
“CMAN believes that a vibrant capital market should not merely serve institutional investors and large
corporations. It must become a platform through which ordinary Nigerians, small businesses, start-ups, state governments and infrastructure developers can access long-term capital at competitive costs.
“To achieve this objective, deliberate policy measures are required to deepen the market, broaden participation and enhance liquidity. One important area deserving attention is the expansion of the supply of quality listed securities.
“We therefore advise the Federal Government to deliberately encourage more companies, particularly large
indigenous enterprises and government-owned commercial entities, to list on the Nigerian Exchange.
“To support this objective, we recommend the introduction of carefully designed fiscal incentives.
Companies undertaking initial public offerings should enjoy temporary tax incentives during the early
years following listing.
“CMAN further recommends that the Company Income Tax applicable to listed companies be reduced from the current 30 per cent to 25 per cent as an incentive for greater public
listing, improved corporate governance and enhanced transparency.
Such incentives would not only deepen the capital market but would also widen investment opportunities
for Nigerians while improving the quality of corporate disclosure and accountability.”
