Wednesday, 07 February 2024 07:17

Capital market: Senate to review legislative frameworks to boost listings, curb tax evasion

The Chairman of the Senate Committee on Capital Market, Osita Izunazo has said that the Senate will review legislative frameworks awaiting amendment in the National Assembly to boost more listings and curb tax evasion 

Izunazo who stated this when he led the delegation’s visit to the Nigerian Exchange Group (NGX Group) on Tuesday reaffirmed the Senate’s commitment to driving legislative reforms aimed at propelling the Nigerian capital market to greater heights. 

He highlighted the crucial role of the capital market in fostering economic prosperity and urged stakeholders to unite in pursuit of common goals. 

  • “We are committed to reviewing various legislative frameworks awaiting amendment in the National Assembly. This includes the Investment and Securities bill, the CIS bill, and the Private Companies Conversion and Listings (PCCL) Bill, among others,” stated Izunazo. 

Public enlightenment on the stock market 

 Emphasizing the importance of public enlightenment on stock market investment benefits, Izunazo underscored the role of legislative interventions in encouraging companies to list on the Exchange. 

  • “Listing on the stock exchange promotes transparency, curbs tax evasion, and fosters both individual company and economic growth,” he remarked. 
  • “Our visit to NGX underscores our dedication to advancing the Nigerian capital market’s growth agenda. We will continue collaborating closely with market stakeholders to tackle existing challenges and unlock growth opportunities,” Izunazo concluded. 

The Director General of the Securities and Exchange Commission (SEC), Lamido Yuguda assured the Exchange of strengthening its regulatory framework aimed at supporting the Exchange and diversifying the market. 

Speaking on the efforts to motivate more private investors into the market, he stated: 

  • “We are doing everything that we can to get regulations that give confidence to both domestic and foreign investors.  
  • For example, we have the policy on custody of all CIS products in our market, whether bilateral or public and we have seen the CIS sector responding positively to this development.  
  • The asset under management is growing and investors are better advised to invest through the CIS because they have experienced portfolio managers who are best equipped to manage their investments.” 

Collaborative efforts between government, regulatory bodies  

The Group Chairman of NGX, Umaru Kwairanga, in his remarks, emphasized the need for collaborative efforts between government, regulatory bodies, and market participants to unlock the market’s full potential. 

The Chief Executive Officer of NGX Group, Temi Popoola, echoed Kwairanga’s sentiments, emphasizing the importance of legislative interventions to encourage dollar-denominated transactions and the role of the capital market in revenue mobilization and tax compliance. He also highlighted the importance of pension reforms and the introduction of derivatives as instruments to mitigate market volatility. 

[Nairametrics]



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