Individuals and most private sector companies are dependent on banks for funding, but there has been a timing mismatch between lending and borrowing in the Nigerian financial system. There is little long term lending available, which reduces long term investment and growth. Nurturing other ways to raise funds could increase competition thus reducing costs, encourage best practice lending and encourage better, longer term investment.
In February 2003, The Bank of Uganda introduced the primary dealer system. The main objectives were to: (i)  Promote financial markets development. (ii)  Stimulate and broaden the government securities market through increased competition. As you all know, Primary dealers serve as trading counterparties of the Bank of Uganda in its implementation of monetary policy.