Uwaleke Urges FG to Slash Companies Income Tax

By Dipo Olowookere

Head of Banking and Finance Department, Nasarawa State University, Keffi, Prof. Uche Uwaleke, has advised federal government to consider reducing listed companies income tax and clauses that allow privatization through the capital market.

Mr Uwaleke gave this suggestion at the third Annual Budget Seminar of Securities and Exchange Commission (SEC) held in Lagos on Monday with the theme Budgets, Elections and Capital Markets: Risks and Opportunities in 2019.

The Nigeria’s first Professor of Capital Market said by taking the above step, government would have indirectly intervened in the capital market by infusing pro capital market measures into the budget to accelerate the growth of the market.

He said government must encourage patronage of local produce which in the long run would assist the growth of companies listed on the equities market to compete favourably to deepen the market.

According to him, five emerging countries currently taking these measures as part of the budget have recorded increased level of economic growth.

”Some emerging African countries have recognized that it is important to include pro capital market measures in the budget like reducing listed companies income tax and clauses that allow privatization through the capital market.

“Pakistan, for instance, is looking at reducing company income tax for listed companies, while India looks to privatize through the stock exchange.

“We must introduce pro capital measures in the federal budget. Government can intervene indirectly in the capital market by adopting these measures as part of the budget,” the capital market expert said.

“Governments should include pro capital market measures in the budget like privatisation through the stock exchange, reduction in company income tax among others,” he added.

Also speaking at the event, CEO of Chapel Hill Denham, Mr Bolaji Balogun, said the solutions to Nigeria’s problems are inside the capital market.

Mr Balogun emphasised that the capital market was capable of leading this country out of poverty and urged government to take keen interest in the sector.

“You cannot finance development on banks, rather you have to focus on the critical role the capital market will play on long term capital formation,” he said.

On her part, Acting Director-General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, urged stakeholders to show keen interest in the budget and try to analyse how it affects them because the budget affects the economy as well the capital market.

“Investors also sit down and analyse the budget and that is why the capital market is looking at the impact of the budget and how the market can aid its implementation.

“The capital market is very important in funding for a lot of projects in the economy. It is important in raising these money to fund the budget. We want to be at the driving seat and contribute to the budget.

“We are interested in driving and contributing to this economy and that is why we are having this seminar.

“We believe there are a lot of opportunities for the capital market in this budget. There is need for us to sit down again as a capital market community and find ways of driving the budget,” she stated.