The Speaker of the House of Representatives, Yakubu Dogara, has explained that the decision to demutualise the Nigerian Stock Exchange was borne out of the need to open up the capital market to make it more attractive to investors, and to ensure that it conforms to global best practices.
LEADERSHIP recalls that the House, last week, adopted the recommendations of a report by its Committee on Capital Market and Institutions on a Bill for an Act to facilitate the development of Nigeria’s Capital Market by enabling the conversion and re-registration of the Nigerian Stock Exchange from a company limited by guarantee to a public company limited by shares; and for related matters.
In a statement issued on Monday, the Speaker said the demutualisation of the NSE will bring the ordinary Nigerian closer to benefiting from the nations commonwealth, since it will make more multinational corporations get their companies listed, thereby contributing to the development of the economy.
Dogara further noted that the changes made by the House, when concurred to by the Senate and signed into law by the President, will result in more involvement of investors in governance, as well as provide a flexible governance structure in the capital market, thereby making it easy to take decisive action in response to changes in the business environment where and when necessary.
It will also ensure increased access to resources for lcapital investment raised by way of equity offerings or private investment.
It would be recalled that in June 2016, Dogara became the first speaker who visited the stock exchange in Lagos where he sounded the closing gong and promised to use legislative tools to reposition the capital market for maximum performance.
The speaker had argued that it is unacceptable for a large chunk of the nations resources or capital to be heavily concentrated in the hands of few chief executive officers, CEOs, as it further widens the inequality gap, eliminates the middle class and plunges more people into abject poverty, thereby posing serious threat to the sustenance and survival of democracy.
He further maintained that deepening of Nigerias capital market will enhance wealth redistribution and deliberately allow it to trickle down to the ordinary people as against the practice where multinational corporations repatriate their profits 100 percent to their own countries without investing a dime back to the Nigerian economy.
The Bill is expected to be transmitted to the Senate for concurrence in a few days.
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