28 January 2013

Nigeria: FG Tasked On Enabling Environment for IPOs

The Nigerian Stock Exchange has challenged the federal government to create enabling environment that will enhance the return of Initial Public Offers (IPOs) in the capital market.

The CEO of the Nigerian Stock Exchange, Oscar Onyema, said market capitalisation of the Nigerian market would increase if government creates an enabling environment for initial public offerings to return to the exchange.

He said: "We cannot say that our market is completely back until initial public offers and new listings are back in the market; therefore, we need active government support in terms of providing the environment for companies to list their shares on the exchange."

According to him, "Presently our market capitalisation is only 17 per cent of the country's gross domestic product, and this is one of the lowest in Africa. We need the utility companies, oil companies and telecoms companies to list their shares, and we believe that government has a great role to play in this regard."

"If we can attract the oil and gas sector, if we can attract the telecoms and power sectors, then we should be able to grow our capitalisation," Onyema added.

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