Market operators have called on the Federal Government to ensure that the Sovereign Wealth Fund is invested in the Nigerian capital market.

Specifically, the operators said that the fund, which is long-term in nature, should be invested in the equities section of the Nigerian Stock Exchange.

This, according to them, is because; the equities market is for long-term investments, therefore, funds with long-term perspective should be invested there.

The Managing Director, Partnership Investment Plc, Mr. Victor Ogiemwonyi, who noted this, said that the fund would also help in deepening the capital market.

He stated that rather than for the funds to be taken abroad, it would be better for the Nigerian economy if the funds were invested in the equities market.

He said, “We hope that the authorities will consider investing the SWF in our equities market. This will benefit the market, because, the fund which has a long term nature, is appropriate for investing in equities.

“This is especially timely with the low value and inherent opportunities in most of the quoted companies, and so the fund should be used to buy up equities in Nigeria instead of being invested outside the country, as this would also deepen our market.”

Ogiemwonyi expressed confidence in the rebound of the equities market this year because of the current activities in the local and international economy.

He noted that some of the factors that would drive the recovery of the market this year could include the proposed deregulation of the petroleum sector and the successful resolution of the country’s energy crisis.

According to him, other factors, which will also drive market growth in 2012 include; the tackling of the issues of insecurity and the successful privatisation of a number of public companies.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, had noted that the speedy passage of the bill would ensure that the Nigerian economy became more open to the outside world, thus improving activities in the economy and the Nigerian capital market.

He also explained that the NSE supported the ongoing plans by the Federal Government to deregulate the downstream oil sector of the NSE, adding that it would open up the capital market.

“We at the Exchange believe that the passage of the revised PIB would go a long way toward improving activities in the capital market, because a lot of opportunities would be opened up and more investments would find their way into our capital market,” he said.

Source: Punch/Udeme Ekwere