Economy
Proposed Fragmentation of Stock Market Tears Operators Apart
By Dipo Olowookere
Capital market operators in Nigeria have expressed divergent views on the plan by the Securities and Exchange Commission (SEC) to fragment the stock market, Vanguard is reporting.
The SEC had disclosed plan to fragment the stock exchange further to cater for small and medium enterprises (SMEs) in the country interested in listing but are encumbered by the stringent listing requirement of the Nigerian Stock Exchange (NSE) as part of efforts to drive equity listing in the stock market.
According to SEC, the process, when completed, would lessen the strident listing rules that have been hindering small companies from listing in the stock market.
However, operators who spoke to Financial Vanguard said that creation of multiple exchanges is not enough to propel listing, while others argue that it is the right step in the right direction.
According to Mr Johnson Chukwu, Managing Director/CEO, Cowry Asset Management Limited, creating multiple exchanges would have little impact on the quest to get more companies to list.
He noted that what is of utmost importance is for companies to have incentives for listing. He opined that though it is good to have multiple exchanges, create different listing requirements for those exchanges and have lower standard of listing requirements, but ultimately, “shareholders are looking for liquidity for their stocks; they are looking for appropriate pricing of their stocks and access to long term funds. Those conditions must be in place to make for the buoyancy of those exchanges”
Appropriate pricing of their shares
“We have had two tier market for a long time. We had a second tier market and we now have the ASeM that took over the second tier market and we have seen the performance of the AseM.
“The basic thing is not for companies to list, there must be incentive for listing and those incentives should include liquidity in their shares, appropriate pricing of their shares and ability to obtain longer term funds by virtue of being listed.
“These conditions must be in place for companies to signify to list irrespective of the number of exchanges you have.
“Unfortunately, because of the current economic condition, stock prices are not reflective of the intrinsic worth of the companies and shareholders do not have any compelling need to list their companies.
“So, until those conditions are in place when the stock market will reflect the intrinsic worth of the companies, stocks should be appropriately priced, the market will increase liquidity for those stocks, then listing will give companies opportunity to raise long term funds from the primary market, then multiple stock exchanges may not materially affect the number of companies that will list,” Mr Chukwu argued.
In his own view, Mr Austin Okoye, Member, Channel Sales, Cordros Capital Limited, said the plan is not bad in itself, but the implementation stage might pose a challenge.
He observed that the SEC may not be toeing an unusual line, saying that it is the practice in other climes.
According to him, the creation of multiple exchanges as proposed by SEC would likely create competition among the exchanges leading to more efficiency and effectiveness.
He further stated that it would engender more seriousness in corporate governance of the exchanges.
“Multiple stock exchanges will create an element of liquidity and transparency because whether the exchanges know it or not, they are competing in some ways and companies will have to look at which exchange that provide the best opportunity for them before deciding whether to list on NSE or any of the new ones that will be created.
“In the end, it will be good but a lot will depend on the management of all the exchanges,” Mr Okoye said.
He added that competition will also drive down cost and create opportunity for companies that are not eligible today to be listed on the NSE to access those exchanges.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn