QUESTION 2 Federal Capital Development Authority (FCDA) is a public sector entity responsible for the development of Abuja, the Federal Capital Territory of Nigeria. The Authority is considering raising long-term funds to finance a major infrastructure project valued at N50 billion. The Director of Finance, Mr. Emeka Nwosu, has been tasked with preparing a report for the Authority's Governing Board on the available financial market options and related concepts. In the course of his research, Mr. Nwosu came across the following statements from different financial advisers: Adviser A stated: 'The primary market is the most appropriate avenue for FCDA to raise new funds directly from investors.' Adviser B stated: 'The secondary market is where FCDA should focus because it provides liquidity to investors who purchase the Authority's instruments.' Adviser C stated: 'FCDA should consider using financial intermediaries such as development finance institutions rather than approaching the capital market directly.' Required: (a) Explain the concepts of Primary Market and Secondary Market, and evaluate the statements made by Adviser A and Adviser B in the context of FCDA's fund-raising objective. (12 marks) (b) Explain the concept of financial intermediation and discuss THREE advantages of using financial intermediaries as suggested by Adviser C. (8 marks) (c) Identify and briefly explain FOUR types of financial institutions operating in Nigeria that FCDA could engage in its fund-raising efforts. (5 marks) (Total: 25 marks)