4 December 2012

Nigeria: FG Rolls Out Incentives to Revive Capital Market

The Federal Government moved Tuesday , to revive the capital market with the introduction of incentives/measures to bolster the market and check abuses, which triggered the unprecedented meltdown that characterised activities since 2008.

Among the incentives is a 'forbearance' of about N22.6 billion on the margin loans of 84 stock brokers, in accordance with Section 6(5) of the Asset Management Corporation of Nigeria (AMCON Act.

Also, stamp duties and VAT on stock market transaction fees are henceforth to be eliminated..

Besides the incentives, strong sanctions await capital market operators, who indulge in bad behaviour that characterised the past as well as excessive borrowing, which led to huge margin loans.

Coordinating Minister for the Economy (CME) and Minister of Finance, Dr. Ngozi Okonjo-Iweala, who briefed journalists in Abuja aloingside the Director General of the Securities and Exchange Commission (SEC), Ms. Aruma Oteh, recalled that the capital market has been performing far below its potential in recent years.

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