CSCS has created access to funds for infrastructure development – Official

Kyari Abba-Bukar, the Managing Director, Central Securities Clearing System, has said that the Capital Market has created access to funds for infrastructure development through the sale of bonds and equities.
Abba-Bukar said this at a monthly seminar organised by the Nigerian-South African Chamber of Commerce on Thursday in Lagos.
Speaking on the topic, “The Role of CSCS in the Nigerian Economy”, he said that the CSCS had improved the economy through mobilisation of funds from the surplus to the deficit sectors.
He said: “CSCS as a central security depository has been involved in the regulation of the activities of the Nigerian capital market.
“The Capital Market is a significant aspect of the economy whose role cannot be underrated.
“It has created various opportunities for diversified investments, promotion of Small and Medium Enterprises and job creation.”
Abba-Bukar said that it was expedient for more Nigerians to invest in the stock market in order to achieve economic development of the nation.
He added: “For us to achieve the desired economic growth as a nation, at least 20 per cent of Nigeria’s population should invest in the capital market.
“CSCS has helped regain the confidence of investors by minimising their risks and numerous complaints of failed trades and low market liquidity.”
Abba-Bukar said that CSCS was involved in the issuance of International Securities Identification Number, which would help eradicate fraudulent practices in the capital market.
He told the News Agency of Nigeria on the sidelines of the seminar that there were plans to commence public sensitisation on the importance of dematerialisation of share certificates.
He said that about 70 per cent of existing stocks had been dematerialised into the digital system of the CSCS.
Abba-Bukar advised shareholders to embrace the dematerialisation as it would reduce the risk of duplicating or losing share certificates.
He said: “Dematerialisation will help eradicate the burden of keeping shares certificates.
“It will also ensure an easy sale of small fractions of investors’ shares.”