NGX on $1tn Economy: High Governance Standards in Public, Private Institutions Critical to Building Investor Confidence
Ndubuisi Francis in Abuja Chairman of the Nigeria Exchange Group (NGX), Dr. Umaru Kwairanga, has stated that realising Nigeria’s ambition to build a $1 trillion economy would require more than
Dr. Umaru Kwairanga, Chairman of the Nigeria Exchange Group (NGX), emphasized that achieving Nigeria’s goal of a $1 trillion economy requires more than just policy reforms. He stressed the importance of sustained capital mobilization, strong institutions, and a governance framework that instills confidence in both domestic and international investors.
Kwairanga argued that Nigeria cannot build a robust economy solely on short-term, volatile investments, like "hot money." Instead, the country needs patient capital that is long-term and can be channeled into critical infrastructure, laying the foundation for sustainable growth.
To attract such capital, both public and private institutions must uphold high governance standards. This assurance will demonstrate to investors that their funds are secure. Kwairanga highlighted this point during his remarks at the Chartered Institute of Directors (CIoD) conference dinner in Lagos. He noted that Nigeria’s ambition to become a $1 trillion economy presents a significant opportunity to establish the country as a leading investment destination and economic powerhouse in Africa.
However, he pointed out that realizing this vision demands more than just policy changes; it necessitates sustained capital mobilization, robust institutions, and a governance framework that inspires confidence among investors.
Kwairanga stressed that the capital market plays a crucial role in this transformation. It should serve as a platform for financing infrastructure, expanding productive enterprises, and unlocking investment opportunities across crucial sectors. The depth and resilience of the capital market will be vital in attracting patient, long-term capital essential for supporting sustainable economic growth.
"Capital follows confidence, and confidence is built on good governance," Kwairanga stated. Transparency, accountability, regulatory consistency, and institutional integrity are not just corporate obligations but are essential drivers of economic competitiveness.
At the NGX, there is a steadfast commitment to enhancing market integrity, increasing investor participation, and advancing a capital market that fosters sustainable wealth creation. Kwairanga concluded by expressing the belief that building a $1 trillion economy is not merely about hitting a numerical target; it is about creating a resilient, inclusive, and globally competitive economy that delivers lasting prosperity for Nigerians.
He emphasized the necessity of leveraging digital technology to expand the reach of goods and services across borders and social media to provide existing businesses with new avenues to broaden their markets and offer budding entrepreneurs a swift path to success. Kwairanga concluded by congratulating the CIoD on another successful conference, noting that it reinforced the Institute’s role as a leader in capacity building and advocacy for corporate governance practitioners in Nigeria.
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