Capital market operators urge govt to introduce tax incentives

22 February 2015, Abuja – Two capital market operators have called for the introduction of strong incentives by the Federal Government in 2015 to ensure the listing of multinationals on the nation’s bourse.

They said in Lagos that government should introduce tax incentives to deepen activities in the Nigerian capital market.

Mr Ariyo Olushekun, the immediate past President, Chartered Institute of Stockbrokers (CIS), said the introduction of tax incentives would encourage listing of more companies on the Nigerian Stock Exchange (NSE).

Olushekun said the market growth would be sustained through the listing of new entities in the oil and gas and telecommunications industries.

He said the Federal Government should make certain considerations exclusive to the listed companies to increase more participation in the market.

The former CIS president said quoted companies could be exempted from payment of corporate tax to increase the number of companies listed on the exchange.

Olushekun said the market had suffered major setbacks due to monetary policies’ instability, fall in oil prices and security challenges.

He said it should be supported through friendly policies.

“Companies cannot be forced to list, but people will want to list if there are friendly policies by the government,” Olushekun said.

He also called for a speedy listing of the government privatised agencies to boost the market depth and increase in tradeable products.

Also, Mrs Oluwatoyin Sanni, the Group Chief Executive Officer, UBA Capital Plc, called for the introduction of tax breaks to promote the listing of telecommunications and other large firms.

Sanni urged the Federal Government to ensure the privatisation of the state-owned enterprises and their listing on the state exchange.

She also advised the government to continue with the key industry reforms embarked upon in the power and transportation sectors.

About the Author