FG, NSE to collaborate on capital market development

The Federal Government has said it would work with the Nigerian Stock Exchange (NSE) by putting policies in place that would enhance the growth of the market.

The Minister of Finance, Budget and National Planning,  Zainab Ahmed, made the promise during her visit to the NSE on Monday.

She said the federal government would introduce more tax incentives that would boost investments in Nigeria.

According to her, the government had in past worked closely with the NSE in various forms, noting some tax provisions had been made in the Finance Act of 2019 that will assist to deepen the market in areas of real estate investment schemes (REITS) and securities lending.

“We have asked the NSE to continue to work with us so that we can encourage Nigerians to invest more in the Nigerian capital market. We have a lot of resources locally and we are working with the NSE to ensure we mobilise resources through the market. Any policy that government needs to put in place to enable the growth of the market, we will do that,” she said.

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She explained that while the Finance Act of 2019 had taken care of some incentives, the next Finance Act will make provisions for incentives that would enable the market to be attractive to investors. She declared every Appropriation Bill will come with Finance Bill every year.

Responding to the capital market operators’ request to defer the planned recapitalisation exercise in the market, the minister said, it would make them stronger and compete better in the market.

According to her, the demutualisation of the NSE, coming through soon, stockbroking firms would have more businesses to do and therefore needed to recapitalise to operate better.

Also responding to comments by stockbrokers that many ministers had in past come to the NSE with many promises without fulfilling them, Ahmed assured the market operators that her visit would be different because she committed to ensuring that the capital market is used to unlock the economic potential of the country.

In his welcome address, the Chief Executive Officer of NSE, Oscar Onyema said they we indeed delighted and honoured to host the minister and her delegation to the event, which they themed: ‘A day at the NSE.’

“ It is one in a series of the NSE’s renewed government relations, where key government stakeholders interact with the capital market community on important issues that affect both parties in terms of Nigeria’s economic management and policy reforms, ease of doing business environment, foreign and local investment attractiveness, capital market and ultimately economic growth and development,” he said.