The Association of Issuing Houses of Nigeria has called on the Securities and Exchange Commission to review the cost of transactions in the capital market.

According to the association, by making the cost of transactions competitive, the market will attract more investors, which in turn will aid its development.

Members of the association made the call at its Annual General Meeting in Lagos, stressing that there was an urgent need to increase liquidity in the market.

The AIHN members, who focused on ways to boost the country’s depressed markets at the yearly meeting, explained that if the regulators allow a liberal regime of fees and commissions, the market would be more competitive.

The Managing Director and Chief Executive Officer, Afrinvest (West Africa) Limited, Ike Chioke, said fees on transactions should be determined by market forces and not by market regulators.

He said, “The regulator has not articulated properly the distinction between different kinds of securities and kinds of fee threshold. Instead of focusing on pegging the fee of an adviser to a certain number, it should really look at the dynamics and how to deepen and enhance the market.

“If I know that a company is willing to pay me five per cent to bring them to be listed on the Nigerian Stock Exchange because it is a lot of hard work to do, then I should be allowed to charge those fees.

“Once those shares are listed, they become permanent in the market to the benefit and growth of the Nigerian capital market.

“So, the issue of fees needn’t be one of one-size-fits all. As the market gets more efficient, what you find is that the fees will drop because there will be more competition and more participants offering similar services.”

The President, AIHN, Mr. Victor Ogiemwonyi, urged members to set up a committee to carry out a comparative review of fees and commissions against those of overseas markets.

Punch