FG Urges NGX to Design Policies Beneficial to Investors

By Dipo Olowookere

The federal government has advised the management of the Nigerian Exchange (NGX) Limited led by Mr Temi Popoola to design policies aimed to further boost the confidence of investors.

The Permanent Secretary in the Ministry of Finance, Budget and National Planning, Mr Aliyu Ahmed, gave this charge when the CEO of the NGX led a team to the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, during the week.

The Permanent Secretary stressed that it is important for the exchange to scale up the operations of the NGX for the benefits of investors and the market.

The CEO of the stock exchange, while speaking at the visit, thanked the ministry for supporting the NGX, noting that the exchange will continue to throw its support in making Nigeria a destination for foreign investment.

The NGX chief also said the exchange will continue to support the ministry’s fiscal policy while expressing willingness to serve on the committee of the Finance Bill 2021.

Mr Popoola used the opportunity to appeal to the federal government to consider reducing the Company Income Tax (CIT) to 20 per cent from 25 per cent, submitting that it will ultimately attract more taxes to the government.

In her remarks, the Minister commended the team for its efforts in ensuring that the Nigerian capital market is deepened.

Mrs Ahmed said the request made by Mr Popoola is a welcome idea, noting that the federal government will look into it as well as other taxes relating to the capital market.

However, she emphasised that the reduction will be on a case-by-case basis, based on the merit of the company seeking such reduction.

According to her, the appeal for a reduction in CIT came at the appropriate time when the ministry was working on the Finance Bill 2021.

While acknowledging the commitment of NGX’s management, which culminated in the demutualisation of the exchange, Mrs Ahmed urged the management to leverage technology and innovations which could ease the processes of trading on the exchange and urged the exchange to ensure that ordinary citizens participated actively in the capital market.

She said the federal government has directed the Securities and Exchange Commission (SEC) to organise a saving policy and programme that would encourage citizens to participate actively in the capital market as a means of unlocking the potential.