Modupe Gbadeyanka
By Modupe Gbadeyanka
Acting Director-General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, has said in order to encourage the listing of small companies on the trading floor of the Nigerian Stock Exchange (NSE), there must be financial incentives in place for publicly quoted firms.
The SEC chief explained that, “Our case for fiscal incentives for listed companies on the NSE is actually based on experience.
“What we are saying is that Nigerian companies doing the same business these foreign companies are doing if they are listed should be encouraged in terms of public procurement or whatever government is doing.”
Speaking in Lagos on the sidelines of the Alliance Law Firm’s Maiden Lecture Series, Luncheon and Book Presentation, Ms Uduk said, “We don’t want to keep taking from them because they incur a lot of cost and you cannot reduce the cost more than a limited amount of percentage.”
According to her, “The best is to begin to give them some incentives and with that you have more companies coming to the market, you have more jobs and then people will have dividends of investing.”
The DG, represented at the event themed ‘Contemporary Corporate Governance Issues in Nigeria’ by SEC Director in charge of Zonal Offices Coordinating Department (ZOCD), Mr Edward Okolo, submitted that, “You must have companies to regulate,” asking that “if people are not coming to the market, then who are you going to regulate?”
She said apart from reduction of costs, the measure will translate to huge investment benefits to shareholders and also further position the quoted companies to contribute more to national development through improved capacities and job creation potential.
“The market will create jobs. If you go to Brazil, you go to Asia you see small scale companies coming to the market.
“You see fund managers and others playing the roles they are supposed to play. So, we need those incentives to encourage them to come to the market,” Ms Uduk stated further.
“Nigerians will get the value in terms of dividend payout if the company is listed adding that there should be incentives for companies coming out to get listed so that there could alternatives to savings by Nigerians,” she added.
