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| Delta State Governor, Dr. Emmanuel Uduaghan |
Uduaghan stated this while speaking with capital market
correspondents in Warri during the second Capital Market Committee (CMC)
retreat. Although the capital market has been witnessing some level of recovery
from the downturn, which began in 2008, many investors are still reluctant to
return.
Speaking on the development, the Delta state governor said,
given the experience of many investors who suffered losses, it would be
difficult for them to return now.
“The way the market is now, it will be difficult for
investors to invest. Investments need a lot of confidence. And many people who
lost a lot of money would not want that to happen to them again, not for now. I
know of some political friends who lost so much money in the market. That is
why it is crucial for regulators to intensify their efforts to educate
investors and assure them of the safety of their investments,” he said.
Uduaghan, who disclosed that he does not invest in stocks
due to his low risk appetite, enthused that “with the cooperation of the media
and efforts of the regulators to reposition the market, it will bounce back at
some point.”
The governor had, during the CMC retreat, also called on the
Central Bank of Nigeria (CBN) to work towards achieving lower interest rates so
that borrowers would have access to cheaper funds for the growth of the
nation’s economy.
According to him, a lower interest rate would encourage more
companies and state governments to borrow for expansion and infrastructure
development respectively, saying this would lead to enhancement employment
opportunities in public and private sectors of the economy.
Uduaghan explained that even the bonds market many state
governments and corporates have been patronising is becoming unattractive due
to high interest rate.
“States need to raise funds to fast track infrastructural
development while companies also raise funds to expand, produce more goods and
create more employment. But the interest rate is not allowing this to happen as
expected. Some of us who have raise bonds believe the rates at which the bonds
were issued were high,” he said.
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