‘FG Must Encourage New Listings to Boost Market Participation,Tax Revenue’
The former President, Chartered Institute of Stockbrokers, (CIS), Mr. Olatunde Amolegbe, yesterday called on the Federal Government to encourage new listings on the nation’s bourse to boost capital market participation and generate tax.
Amolegbe highlighted companies in which the government had direct or indirect holding as well as companies that did business with government.
This, he said, would not only deepen the capital market but would engender transparency and boost tax revenue in the country.
Amolegbe made the call at the Capital Market Correspondents Association of Nigeria (CAMCAN) January forum in Lagos with the theme: “Review of 2023 Market Performance and
Outlook for 2024.”
He said as against over 50 per cent market capitalisation to Gross Domestic Product (GDP) as seen in many countries, Nigeria’s market capitalisation to GDP stands at 13 per cent.
“This is an indication that majority of the big companies in the country are not participating in the Nigerian capital market,” he said.
Amolegbe, who is the
Managing Director/Chief Executive of Arthur Steven Asset Management Limited, noted that the capital market ensures transparency for listed companies, stressing that increased listings would increase tax revenue for the government.
“I believe government needs to consider urging companies particularly those they have direct holding in and those that have huge business with government to list on the market. “A lot of businesses are not listed on the exchange and they do business a lot with government; the more transparent the listing, the more tax revenue,” he said.
Expressing optimism on the listing of Dangote Refinery and NNPC Limited, he said it would boost the capitalisation of the Nigerian capital market.
He also charged the government on the rising spate of insecurity in the country saying until it is addressed, inflation would continue to soar and investor would remain wary of investing in the country.
“Insecurity is a major issue and government needs to work on it as it is disrupting supply chain and this contributing to the increase in inflation rate.
“Farmers are not unable to produce and the ones that can produce can’t get to market,” Amolegbe said.