Vanguard (Lagos)

Nigeria: NSE Asks FG to Grant Tax Incentives to Quoted Coys

The Nigerian Stock Exchange, NSE, yesterday, called on the Federal Government to grant tax incentives to companies listed on the Exchange as part of measures to attract more firms to list on the NSE.

The NSE also warned operators to desist from any malpractice capable of tarnishing the image of Nigerian stock market as it will deal decisively with any person or firm caught in an illegal deal in accordance with its rules and regulations.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, who disclosed this at a briefing to review the performance of the market in 2012 and outlook for 2013, said, "we commend the Ministry of Finance for the pronouncement of the elimination of Value Added Tax, VAT, stamp duties and expect that the Federal Government gazettes it so that its implementation will take effect as early as possible in 2013.

Furthermore, we encourage government to grant more tax incentives to quoted companies in order to attract more companies to list on the Exchange. We thank the Federal Government for the forbearance package for the stockbrokers and hope that it will help boost activities in the market."

Continuing, he said early passage of the budget is a welcome development and asked for the quick passage of the Petroleum Industry Bill, PIB, even with the proposed amendment. We expect pronouncement to begin investing proceeds of the Sovereign Wealth Fund, SWF, in March 2013."

In his comment on market infractions, he said, "We have put in place surveillance team that is monitoring activities in the market and they are on the alert to fish out any culprit found in such an act. The Exchange will not spare any person perpetrating illegal act and would punish him or her accordingly."

Onyema, further noted that the Nigerian Stock Exchange, NSE, was one of the top performing exchanges globally in 2012.

According to hum " The NSE All Share Index (ASI) grew 35.45 percent and average daily turnover for equities was N2.65 billion ($17.05 million), up 2.71 percent. The capitalisation of listed equities grew 37.31 percent from N6.54 ($43.08 billion) to N8.98 trillion ($57.77 billion). The year closed with two new equity listings on the Main Board and 10 new bond listings.

" In 2012, the NSE executed a number of key strategic initiatives, among which were Primary Market Making, a suite of value-added services (Xvalue), and investments in two alternative trading platforms.

The outlook for 2013 is largely positive for both the Nigerian economy and the Nigerian capital market as changes implemented in 2012 begin to crystallize in 2013.

By the end of 2013, the NSE expects to be well-positioned to adapt our business to meet the needs of our clients, and to enable the Nigerian capital market absorb the forces of change reshaping global financial markets and the global exchange landscape."

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