The Nigerian Exchange Group Plc called on the Federal Government to actively promote listings on the nation’s bourse, aiming to enhance liquidity in the capital market and bolster tax revenue generation.
The Group made the call during a meeting with Dr Doris Nkiruka Uzoka-Anite, Honourable Minister of Industry, and Trade & Investment at the NGX House in Lagos.
The meeting which has the CEO of Dangote Sugar Refinery Plc, Mr. Ravindra Signh Singhvi, and the CEO of BUA Foods, Mr. Ayodele Musibau Abioye in attendance brainstormed on ways of collaboration for the development of the real sector of the economy.
Need for the government to encourage listings
The Chairman of NGX Group, Alhaji (Dr) Umaru Kwairanga emphasized the significance of encouraging listings through enabling policies and incentives for potential companies.
He stressed that such an initiative would not only deepen the capital market but also foster transparency, subsequently contributing to an increase in tax revenue within the country.
Kwairanga who noted that the capital market ensures transparency for listed companies said the increased listing would increase tax revenue for the government.
He noted that the market has literally witnessed transformation since the emergence of President Tinubu’s government following market-oriented policies.
The Group Managing Director of NGX Group, Mr. Temi Popoola said one of the areas the NGX IS seeking collaboration with the Ministry is to drive growth in SMEs.
He noted that growing that sector is necessary for the overall growth of the economy and job creation.
Popoola noted that the Exchange needs government support to bring the power distribution company to list on the Exchange.
Forex volatility
CEO, of Dangote Sugar Refinery Plc, Ravindra Signh Singhvi highlighted forex volatility as a significant challenge for manufacturing companies and stressed the importance of creating a stable environment to alleviate these pressures.
He emphasized Nigeria’s vast resources and urged for innovative approaches to harness this potential effectively.
CEO, of BUA Foods, Ayodele Musibau Abioye called upon the government to promote exports and support small and medium-sized enterprises (SMEs) to stimulate job creation, while also advocating for incentives to be provided to companies.
Abioye urged the government to provide preferential treatment to listed companies to help them overcome shocks caused by government policies.
Additionally, he emphasized the need to address the power issue, which poses a significant challenge to manufacturing companies.
- “Power remains a major challenge for the sector, and we would greatly appreciate its resolution. After raw material costs, energy expenses are the next concern,” he stated.
The government’s vision of achieving a $1 trillion economy
Dr. Doris Nkiruka Uzoka-Anite, Honourable Minister of Industry, Trade, and Investment, highlighted that both the Ministry and the Federal government are committed to addressing the raised issues in the meeting through collaborative efforts to enhance the Exchange and bolster the economy.
She reiterated the government’s vision of achieving a $1 trillion economy, stating that her Ministry remains open to collaborating with all sectors towards this goal.
Acknowledging the unprecedented peak in market capitalization at NGX, she pledged to explore measures such as export incentives and tax benefits to sustain and bolster the industrial sector.
