The Nigerian Stock Exchange (NSE) has said that it continues to engage the Federal Government on tax incentives for listed companies and exemption relating to investments in the capital market.
Oscar N. Onyema, Chief Executive Officer, Nigerian Stock Exchange disclosed this in Lagos on Friday November 29 at the CEO interactive session for the Consumer Goods Sector.
“We are delighted to note that we have made some strides in our discussions, some of which are evident in the proposed amendments to The Finance Bill 2019, which has now been passed by both Houses of the National Assembly.
“Some notable points include; tax exemptions on distributions made by Real Estate Investment Trusts from rental income and also Securities Lending Transactions in order to promote capital market activities. We however remain mindful of the legislative process and are optimistic of future implementations,” Onyema said.
“It is my strong belief that one of the things that Nigeria (and indeed Africa) needs to sustain its growth, is a solid and vibrant capital market ecosystem that will attract investment and unlock the potential that exists in the economy,” he added.
The theme of the conference is “the role of the capital market in unlocking value in the consumer goods sector”.
Nigeria’s consumer market is one of the fastest growing markets in Africa. As far back as 2013, the market was valued at about $377 billion and is now expected to reach about $454 billion by 2025.
This growth is driven by three major factors – population, urbanisation and increased spending power. The country’s estimated population of over 200 million, with 72percent under the age of 30, presents a huge potential for future investment in consumption activity.
NSE believes that there is considerable opportunity for the consumer goods sector to contribute to Nigeria’s sustainability agenda by tapping into the Green and Sustainable Finance Market.
“This represents a new stage in development of the Nigerian capital markets and opens the way to expanded international investments.
“The NSE is playing a key role to help develop this enormous opportunity for Nigeria and fulfill one of our key objectives as a member of the UN Sustainable Stock Exchange Initiative.
“This is evident in our recent partnership with the Luxembourg Stock Exchange to facilitate cross listing of green bonds and provide domestic issuers global visibility to attract international investors”, the NSE CEO stated.
Creating and sustaining the growth trajectory of Nigeria markets and the economy at large requires a strong commitment from each and every one of us, Onyema said
“It is not an easy journey, but it is one we have no choice but to embark upon individually and collectively, in order to develop and guarantee Nigeria and indeed Africa’s competitive advantage in today’s interconnected world.
In 2019, the NSE Consumer Goods Index in particular has recorded a significantly higher negative return of (-29.01percent) year-to-date (ytd).