FG urged to use capital market funds for varsities

Experts have urged the federal market to explore capital market opportunities to fund universities.

They stated this at a webinar on “Sustainable Funding for Universities in Nigeria’’, organised by the Association of Capital Market Academics of Nigeria (ACMAN) at the weekend.

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A former Director-General of the Securities and Exchange Commission (SEC), Dr Suleyman Ndanusa, said funding challenges for universities would further exacerbate due to the huge deficit in the national budget.

“Universities can raise straight project tight bonds for students’ accommodation, new infrastructure can be funded through impact bonds.

“Alumni bonds, and projects can be packaged to attract alumni investments. Public Private Partnership (PPP) can also be adopted in universities,” he said.

Also, a former Vice-Chancellor of the Nasarawa State University, Keffi, Prof. Muhammad Mainoma, said the government could utilise the capital market to fund public universities.

President, Chartered Institute of Stockbrokers, Mr Oluwole Adeosun, stressed the need for political will to enable universities to explore opportunities in the market.

On his part, the Executive Commissioner, Operations at SEC, Mr Dayo Obisan, said some instruments can be securitised to provide long-term capital to find solution to universities’ funding problem.

“I am of a strong belief that the capital market has access to such capital and can help Nigeria to unlock it,” he said.

The ACMAN President, Prof. Uche Uwaleke, said public universities have funding challenges, noting that the symposium was to get solutions to these.

It is about seeking sustainable means of sourcing long-term funds for developing universities, he noted.