Operators in the Nigerian capital market have renewed calls to the Federal Government and the regulators to ensure that activities improve in the market.

According to the operators, an all-inclusive action aimed at restoring investor-confidence as well as deepening the market should be embarked upon by the regulators.

Already, calls have gone to the Federal Government to reduce the income tax of companies quoted on the Nigerian Stock Exchange.

The President, Chartered Institute of Stockbrokers, Mr. Ariyo Olushekun, noted in a statement, that the recent calls by market regulators to ensure that tax incentives were granted to quoted companies should be heeded by the government, adding that this would go a long way towards reviving the market.

He said, “It is important for the government to urgently provide a stimulus package for stockbrokers, to enable and empower them to play their roles in the capital market.

“Also, company income tax paid by companies should be reduced to about 25 per cent from 30 per cent currently. Investors are also paying Value Added Tax, when they buy and sell a stock. We do not think this right. VAT is more applicable to consumption items. Buying and selling of stocks are not consumption items.”

Olushekun also noted that it was essential for the investment strategy of the country’s Sovereign Wealth Fund to be reviewed, adding that if not, Nigeria stood the chance of losing a huge chunk of the fund.

According to him, investing a significant portion of the Sovereign Wealth Fund in the Nigeria Stock Exchange will not only safeguard the fund, but would also help to grow the capital market and the economy as a whole.

He said, “Government should invest the sovereign wealth fund in Nigeria, especially in the capital market. There is no point investing the country’s resources outside the economy. If we do that we are using our resources to help other economy.

“Specifically, the future generation aspect of the fund should be invested here, so that the economy can benefit from it.

“This is particularly so, because if you invest the money outside the economy, there is no guarantee that the other markets will outperform your local markets, anyway, but it is also on record that Libya lost about 80 per cent of its sovereign wealth fund due to almost similar reasons.”

Another stockbroker, Mr. Rasheed Yusuf, lamented the current state of the market and called for the urgent intervention of the Federal Government to help restore confidence and ensure the growth of the market.

He explained that regulators had to stand up to their responsibilities and ensure that the market was bailed out urgently.

Source: Punch/Udeme Ekwere