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Some market
analysts have identified education of investors as a way out of the
wobbly rebound recorded at the Nigerian capital market.

Gbenga Emmanuel, a
finance analyst at WealthZone Company, an investment advisory firm,
said the efforts of relevant capital market authorities towards
investors’ education is still low. “Authorities should devote more time
to investors’ enlightenment in order to boost market performance,” he
said. Gbenga Idowu, managing director of the Centre for Shareholders’
Enlightenment Limited, said investors, being the main drivers of
performance at the Nigerian Stock Exchange, should be well “informed
and involved” on market activities.

More enlightenment

Citing an example,
Mr. Idowu said investors need more enlightenment especially from the
Central Bank and the Ministry of Finance on the much anticipated Asset
Management Company of Nigeria (AMC) targeted at cleaning toxic loans of
banks.

“Even when you put
the AMC in place and you put money there, it will still be run as a
purely profit concern. You do not expect the managing director in
charge of the company to come out and say they have failed because they
have given the money out to Nigerians,” he said, adding that people
only know that the AMC will clean banks’ books.

Tunde
Oladapo-Dixon, chief executive officer, StockPicks Consulting, a stock
broking firm, said real investors are still shying away from the market.

“Real retail
investors are not investing yet in the market. Institutional investors
are the one playing the market and because they will always want to
take their profits, market performance is bound to be unstable,” Mr.
Oladapo-Dixon said.

Commission assures

Meanwhile, the
director general of the Securities and Exchange Commission (SEC),
Arunma Oteh, has promised that her administration will focus more on
investors’ education.

At a seminar last
weekend, Ms. Oteh said the greatest asset of any capital market, and
indeed financial market, is its investors. “It is investors, whether
retail or institutional, who provide the savings which are needed for
productive investment. Therefore, if investors lose confidence in the
capital market, the ability of the market to mobilise and channel long
term funds, which are very vital for economic development, will be
marred,” she said.

The SEC’s boss added that a market would lose its essence without
the confidence of investors. “To build a world class market therefore,
the SEC would focus considerably on investor protection and the
restoration and sustenance of investors’ confidence in the market. No
doubt, investors will feel protected and confident to participate when
a market is perceived as fair, efficient, and transparent with a strong
enforcement regime. The SEC is committed to building a market which
displays such internationally recognised characteristics.”