The federal Government will consider incentives to encourage companies to list their shares on the Nigerian Stock Exchange (NSE) in recognition of the importance of the Nigerian capital market as a major driver of the national economy.
The Vice President, Prof. Yemi Osinbajo, gave this assurance yesterday during a working visit to the NSE in Lagos.
Osinbajo on the occasion interacted with market stakeholders and traders and performed the ceremonial closing of the market.
Alhaji Aliko Dangote, a former president of the NSE and the owner of the largest group of companies on the Exchange, was also at the interactive session.
Osinbajo said the government would work with the NSE to promote the Nigerian stock market, given the role of the Stock Exchange as an important driver of economic activities and investments.
He noted that while the main focus of the government is to create a generally amenable operating environment for the private sector to thrive, government will also consider proposals from the Exchange on ways to encourage listing and support corporate growth.
“We certainly want to encourage listing, and that’s part of why I am here, to promote interest in the market,” Osinbajo said.
He said the government would work with the market stakeholders determine possible areas of incentives and support that could stimulate participation in the Nigerian market.
“We will be acting a lot on the advice of the NSE council. Where the NSE council or the market makers think that there are things that may be done to make life easier in some way or to encourage listing in some way, we will be happy to listen to those,” Osinbajo said.
He however ruled out direct government intervention in goading privatised companies to list their shares, noting that the decision to list by private companies will remain decisions of their boards and shareholders.
“And I think for privatised companies, the decision is not in the hands of the government. Because they are already privatised, listing should be the decision of the new owners.
“So, really it’s not the government that will decide on the listing of the privatised companies, but we are fully ready to encourage listing on the Stock Exchange,” Osinbajo said.
He also reiterated the commitment of the government to explore the Nigerian capital market to finance the national budget.
He pointed out that the Ease of Doing Business Council recently inaugurated by President Muhammadu Buhari would address a lot of challenges facing the private sector and provide general incentives for the development of the private sector.
He noted that the government recognises that the national economic development is a partnership between the private sector and the government, with the main roles of the government being provision of enabling environment for businesses to thrive.
Capital market stakeholders had consistently canvassed for incentives that will encourage listing of the major companies in the key sectors of the economy- oil and gas, telecommunication and manufacturing on the Exchange. The main proposals include tax waivers and special recognition in terms of government licensing and contracts.
Doyen of Stockbrokers, Alhaji Rasheed Yusuf, urged the government to include a representative of the stock market in the National Economic Council with a view to ensuring direct linkage between government policies and the capital market.
In his remarks, President, Nigerian Stock Exchange (NSE), Mr. Aigboje Aig-Imoukhuede, said the interaction with the Vice President had raised hopes that the capital market and the entire economy will overcome the current economic challenges.
He said the Vice President has promised to hold further interactive sessions with the NSE and its stakeholders in a bid to actualise the key areas of interests outlined during this maiden visit.