The Security and Exchange Commission (SEC) on Friday in Abuja appealed to the Federal Government to come up with more incentives for companies listed on its exchange.
The Director-General of the Commission, Mounir Gwarzo made the appeal when he led a delegation on a courtesy visit to the Minister of Information and Culture, Alhaji Lai Mohammed.
Gwarzo, who presented the Nigerian Capital Market Masterplan 2015-2025, to the minister stressed the need for private companies to be listed in the exchange.
“We seek your assistance for companies to be listed on our exchange and we think government has important role to play in this.
“We are not saying that government should compel companies to be listed, but it can give them incentives to be listed.
“Some of the incentives could be that when government is giving a contract, it could say that listed companies on the exchange could have a certain percentage for considerations.
“We believe this is very good because statistics have shown that over 60 per cent of the company tax paid in Nigeria is paid by listed companies.
“When companies are listed, they are also more transparent and one of the major hallmark of this administration is transparency,’’ he said.
The D-G said that the master plan was also designed to encourage retail investors in the nation’s capital market.
According to him, Nigeria has less than two per cent of retail investors in the capital market compared to Malaysia with nine per cent, South Africa with 19 per cent, U.S. with 45 per cent and UK with 97 per cent..
“One of the key ingredients for the development of capital market is to bring back the retail investors,’’ he said.
Gwarzo said that SEC had over N80 billion unclaimed dividends because of administrative bottlenecks attached with dividends warrants.
In addressing this, he said, the commission introduced e-dividend for ease of access.
He explained that with e-dividend, investors could approach their banks download and filled forms for dividends to be paid directly into their accounts.
He solicited the support of the minister in the propagation of the master plan and the e-dividends.
The minister, in his response, assured the delegation that the ministry and the information dissemination agencies under it would give necessary support to the commission.
He commended the Gwarzo-led leadership of SEC introducing the strategic master plan and its determination to move the commission foward. (NAN)
