In a strategic move to address the economic challenges posed by inflation, a prominent Digital Media advocacy group, Digital Awareness Initiative is canvassing the need for the development of a Digital Broadcast Capital Market. The group argues that the proposed move will help to reduce inflationary pressures and alleviate the impact of rising prices on the Nigeria’s citizens.
Drawing on extensive research findings, Jonah Ubanmhen, Chairman of DAI’s Executive Board, argues the Digital Broadcast Capital Market ( DBCM) would enhance Nigeria’s economic structure thereby benefiting the country immensely. “This initiative represents a strategic response to the economic challenges posed by inflation. By embracing digital innovation in capital markets, we can unlock new avenues for investment, stimulate economic activity, and ultimately contribute to a more resilient and stable economy”.
Notably, the proposed market aims to enhance the efficiency and accessibility of the capital market as well as provide a robust foundation for economic development. The group emphasizes the inherent potential of digital broadcasting disseminating timely and accurate financial information to the public. This, they argue, would empower investors with the knowledge needed to make informed decisions, thereby contributing to a more transparent and resilient financial ecosystem.
According to DAI’s Vice President Amaka Obioma, “DAI members across the country are contacting their legislators to urge them to support the proposed initiative and the group is scheduling meetings with other stakeholders, urging them to prioritize these proposed move of developing a Digital Broadcast Capital Market for the benefit of the nation’s economic well-being. Ms. Obioma further stated that “where the dream becomes a reality it will serve as a catalyst for increased investment, injecting liquidity into the economy and subsequently mitigating inflationary pressures. By harnessing the capabilities of digital platforms, we believe that the market could attract a diverse range of investors, prompting broader participation.”
Economists argue that the digital transition not only addresses immediate economic concerns but also lays the groundwork for future innovation and competiveness. The proposal aligns with the ongoing global trend of embracing digital solutions in financial markets, positioning the country as a forward- thinking competitor in the global economic landscape. Other key advantages of the proposed system are; increased transparency, reduced transaction costs, and broader access to investment opportunities for a diverse range of stakeholders. They argue that such measures can create a more robust and inclusive economic environment.
Abubaker Suleiman Ahmed, spokesperson for the group, emphasized the urgency of adopting innovative solutions to address economic challenges, “In a world rapidly advancing towards digitalization, it is crucial for policymakers to embrace technology to enhance economic stability. The Digital Broadcast Capital Market is a forward- thinking approach that has the potential to ease inflationary pressures,”
He further stressed that in addressing inflation’s concerns, the Digital Broadcast Capital Market will be seen as a catalyst for economic innovation and technological advancement. “By embracing digital solutions, Nigeria can position itself as a hub for financial technology, attracting both domestic and international investment” He said.
Lawmakers are now being urged to consider legislative procedure that would facilitate the development of the Digital Broadcast Capital Market (DBCM). The group has proposed a collaborative approach, encouraging policymakers to work closely with technology experts and financial institutions to develop a framework that ensures security and compliance.
The announcement comes at a critical juncture, with citizens feeling the pinch of rising prices across various sectors, prompting a re-evaluation of economic strategies. While the proposal is expected to spark debates among policymakers, the advocates are optimistic that the creation of a digital capital market could offer a viable long-term solution to mitigate Nigeria’s soaring inflation for the benefit of the nation’s economic well-being.