The Securities and Exchange Commission (SEC) has called for introduction of fiscal incentives to encourage the listing of small-scale companies on the trading floor of the Nigerian Stock Exchange (NSE).
Acting Director-General of SEC, Ms Mary Uduk, who stated this at the sideline of an event in Lagos, noted that there must be some incentives in place for small and medium enterprises (SMEs) to be publicly quoted.
Represented by Mr Edward Okolo, SEC’s Director in charge of Zonal Offices Coordinating Department (ZOCD), Uduk said: “Our case for fiscal incentives for listed companies on the NSE is actually based on experience. What we are saying is that Nigerian companies doing the same business that foreign companies are doing if they are listed should be encouraged in terms of public procurement or whatever government is doing.”
The SEC boss further stated: “We don’t want to keep taking from them because they incur a lot of cost and you cannot reduce the cost more than a limited amount of percentage. The best is to begin to give them some incentives and with that you have more companies coming to the market, you have more jobs and then people will have dividends of investing.”
Apart from reduction of costs, Uduk said the measure will translate to huge investment benefits to shareholders and also further position the quoted companies to contribute more to national development through improved capacities and job creation potential.
“The market will create jobs. If you go to Brazil, you go to Asia you see small-scale companies coming to the market. You see fund managers and others playing the roles they are supposed to play. So, we need those incentives to encourage them to come to the market.
Nigerians will get the value in terms of dividend payout if the company is listed adding that there should be incentives for companies coming out to get listed so that there could alternatives to savings by Nigerians,” she added.
· Culled from Vanguard