Effort by the regulatory authorities and other market stakeholders to help develop the stock market will continue to end in futility, except political instability, corruption are checked, stakeholders in the equities market have said.

They believe that policies put in place by managers of the securities market are enough to have transformed the Exchange beyond its present state, even as they claim that urgent measures need to be put in place to safeguard investment in the market.

Speaking on the capital market, as the Nigeria economy clocks 51 last Saturday, the Chief Executive Officer of Lambeth Trust & Investment Company Limited, Mr. David Imafidon Adonrri said the economy of Nigeria at 51 had performed below expectation due to several factors, especially political instability, institution-alised corruption and industrial backwardness.

According to him, “The age long structure of the economy favours distributive trade oiled by financial institutions that specialise in short term financial inter-mediation. As a result, the role of the Capital Market has essentially been to form capital for service sectors specialising in banking and trading activities. Although the Stock Market has grown since inception having being propelled upwards by indigenisation policies 0f 1970s and 1980s, exclusion of enterprises that occupy the commanding heights of the economy has prevented it from serving as barometer of the economy. He explained that, for the Capital Market to seize dominance of the economy from the Money Market, the structure of the economy must change from an import dependent service economy to a production based economy where long term capital formation engineered by the Capital Market is needed.

“Privatisation through the Stock Market and reactivation of State enterprises in the heavy industrial sector can drive earnings of several listed companies such that subsequently, their dividend yield can compete favourably with yield in the debt market. At that point, assets will naturally start flowing back to the equities market”, he added.

In his own comment, the President of the Advancement of Shareholders of Nigeria Dr. Umar Farouk, said the current cash crunch in the stock market is not particular to Nigeria alone as it is a global phenomenon.

He said the present on- going consolidation in the banking industry is another factor that is militating against the stock market, noting that most investors have chosen to stay away until the consolidation exercise was completed.

Farouk, who said the insecurity in the country called for concern, explained that the government must as a matter of urgency help to restore peace and security so as to further restore investors’ confidence in the domestic economy.

“Trend in the global debt crisis is having its negative impact to stock markets around the globe, while depression in the Nigeria capital market is further compounded by the poor state of security in the country.