Report Warns Capital System Misallocating Growth Resources

A recent study by the International Monetary Fund (IMF) warns that the current global capital allocation system is misdirecting investment away from high‑growth sectors and regions. The report finds that financial markets favor low‑risk, low‑return assets—such as large‑cap equities and government bonds—while under‑financing innovative industries, infrastructure, and emerging economies that could generate faster productivity gains. It attributes the bias to regulatory frameworks, risk‑aversion among institutional investors, and a lack of transparent metrics for measuring growth potential. The IMF recommends reforms including better risk‑adjusted pricing, incentives for long‑term investment, and enhanced data on firm‑level productivity to ensure capital supports the... Views Nigeria