If the proposed capital market bill gets passed into law, companies with total assets and turnover in excess of N80 billion must be listed on the Nigerian Stock Exchange (NSE), argues Chris Azubogu, sponsor of the bill.
Azubogu, House of Representatives Committee on Capital Market Deputy Chairman, is seeking to deepen the capital market and create opportunity for Nigerians to own 20 per cent equity.
He said Nigeria, Africa’s largest economy with a gross domestic product (GDP) of $506 billion, has a stock market with a disproportionate capitalisation of about N13 trillion.
In his view, the informal sector has caused so much damage to the economy, and such must not be allowed to continue. This, partly, is what the bill that has passed through second reading seeks to stem.
Said Azubogu: “The informal sector is causing so much damage to the economy. There is need to regulate the economy. The market capitalisation is around N13.4 trillion for an economy that is as large as Nigeria’s, which has the largest gross domestic product in Africa.
“Does that speak well of our capital market? The government is about to sell its assets and businesses to individuals and those who are buying them do not want to go public for us to know how they are running them.
“Going public will force companies to comply. Let the public invest for good disclosure, corporate governance and maintenance of ethical values in management business.”
The focus of the bill is in listing telecommunication companies on the NSE as well as mining, agriculture, oil and gas, agric-allied and power companies.
“We need only 20 per cent of their equity. That law is not for the telecoms companies. We want to make a law that will create opportunity for Nigerians to be shareholders.”
He added that companies that are jittery are trying to avoid taxes and remitting other dues to the government.
The bill may be amended to factor in the parameters that would compel companies to be listed on the NSE, and Azubogu urged any company with suggestions to bring them to the public hearing.
