transparent, and is not stable enough to attract huge capital investments. Transaction costs associated with raising funds (listing requirements, commissions, fees, prices of shares and other regulatory requirements) in the capital market are high. 567. Only sustained improvements in efficiency, coupled with competitive fees, levies and charges, can make the capital market more attractive internally and internationally. Furthermore, improving infrastructure in the market and developing human capacity regularly are the sine qua non for upgrading it. 568. It is necessary to diversify products into a well-structured bond market where prices are market driven to reflect prevailing economic realities. Such a market can serve as an important avenue for raising funds to be used by state and local governments for development projects. The capital market should also allow competitive bidding for debt papers that are tendered for sales. 569. It is necessary to encourage the development and using of financial derivatives as ways of increasing the number of tradable instruments. Currently, only limited use is being made of simple financial derivatives associated with foreign currency markets, forward and option contracts, and options in the debt market relating to debt conversion transactions. Other basic instruments, like warrants (to make corporate bonds attractive) and futures (to broaden the range of available instruments), also need to be considered. iii. Recommendations 570. The APR Panel recommends that: • The authorities pay serious attention to government efficiency in service delivery and support the development of a robust civil society and a strong and efficient private sector. (Federal government, the presidency, Ministry of Finance and CSOs) • Sectoral policies be designed so that they impact directly at the grassroots level. The statutory institutions responsible for economic support should assist the real target groups instead of further enriching the rich. (National Planning Commission, the ministries responsible for agriculture, livestock and rural development, the Ministry of Finance, state governments, local governments and the CBN) • Predictability in the trade sector be increased by resolving the protectionist/liberalisation inconsistency in Nigeria’s trade regime. (Ministry of Commerce and Industry, and Ministry of Finance) • A comprehensive strategy aimed at diversifying the domestic production base and exports away from oil be developed. (Federal and state governments) • Steadfast work towards revamping the agricultural sector, which was once the mainstay of the economy, be undertaken. This entails 171