Members of the House of Representatives Wednesday approved the listing of all private companies with over N40 billion shareholders’ fund on the Nigerian Stock Exchange (NSE).
Notably, this approval dosen’t constitute a final say on the issue as other regulatory requirements have to be met from both the Securities and Exchange Commission (SEC) and the NSE whose listing requirements have to be met by companies eyeing the bourse.
The lawmakers overwhelmingly expressed support for the move during the debate on the bill for an Act to provide for private companies whose shareholders’ fund exceed N40 billion or their annual turnover exceeds N80 billion or total assets exceed N80 billion to convert to public liability companies and get their shares listed in the Stock Exchange thereby promoting growth for both the companies and the Nigerian Capital Market and for other related matters.”
Some of the lawmakers who spoke in favour of the bill included Leo Ogor, deputy House Leader, Osai Nicholas and Chris Azubogu (APGA, Anambra), sponsor of the bill explained that listing of the companies will promote growth of the companies and the Nigerian Capital Market.
In his lead debate, Azubogu said “If proper fundings are given to business owners or small companies in the country, it would help to build up strong business institution that will reduce the rate of unemployment,” he said, adding that the bill seeks to regulate private companies.
On his part, Leo Ogor argued that the House has statutory powers to regulate private companies.
“It is a bill that should be given the necessary support for the interest of the growth of the country’s economy,” he said.
In his contribution, Nicholas Ossai (PDP Delta), while supporting the Bill, noted that local businesses would begin to grow, if such companies are duly listed in NSE.
He said “it will empower and enable Nigerians to participate in the country’s economy. It is in line with international best practices. The bill should be passed so as to improve enterprise in the country.”
Speaking against the bill, however, Fort Dike stressed the need for the proponent of the bill to put various factors into consideration.
Dike who warned against imposition of such regulation on businesses, said “it is anti-business to force individuals to go into stock exchange.
“This bill should not be allowed to scale through because it will be in conflict with the general ideas of investment in the country. This bill will make the parliament look like it lacks business knowledge.”
KEHINDE AKINTOLA, Abuja
