Divergent views have continued to trail the bill before the National Assembly which seeks to compel private companies whose shareholders’ funds exceed N40 billion or its annual turnover exceeds N80 billion and total assets exceed N80 billion to convert to public liability companies and get their shares listed on the Nigerian Stock Exchange.
Specifically, Mr. Nnaemeka Onyeka Obiaraeri, the Managing Director/Chief Executive Officer of Taurus Capital and Advisory Limited stated that it will be very counterproductive to force a company to list in a free market economy. “It does not make sense to me, because you are simply telling somebody whether you like it or not, you must list. If they succeed with the bill they will end up driving away those foreign investors wishing to play in this market,.”
The Lagos Chamber of Commerce and Industry through its Director-General, Mr. Muda Yusuf, in a statement, said that although the 1999 Constitution vests the National Assembly with the power to make laws regulating the ownership and control of business enterprises operating in Nigeria, the proposed bill breaches representations made to attract foreign investors and negatively affects Nigeria’s reputation. “It is counter-productive to the drive for foreign investments because foreign investors prefer to operate under stable economic policies,” it said.
The chamber warned that the proposed bill would also have a negative impact on local investment and the broader economy.
On the contrary, the President/Chief Executive Officer, Pearl Awards Nigeria, Mr. Tayo Orekoya, argued that listing of these companies on stock Exchange will deepen the market. “The market capitalisation will sky-rocket. People will see oppourtunities to invest in the market and then you can now be able to effectively compete with other stock Exchanges across Africa.”
Orekoya stated that it is a positive desire that companies in the telecoms sector, and oil sector list in the market adding that any analysis that runs counter to that is self-serving.
Specifically, Mr. Nnaemeka Onyeka Obiaraeri, the Managing Director/Chief Executive Officer of Taurus Capital and Advisory Limited stated that it will be very counterproductive to force a company to list in a free market economy. “It does not make sense to me, because you are simply telling somebody whether you like it or not, you must list. If they succeed with the bill they will end up driving away those foreign investors wishing to play in this market,.”
The Lagos Chamber of Commerce and Industry through its Director-General, Mr. Muda Yusuf, in a statement, said that although the 1999 Constitution vests the National Assembly with the power to make laws regulating the ownership and control of business enterprises operating in Nigeria, the proposed bill breaches representations made to attract foreign investors and negatively affects Nigeria’s reputation. “It is counter-productive to the drive for foreign investments because foreign investors prefer to operate under stable economic policies,” it said.
The chamber warned that the proposed bill would also have a negative impact on local investment and the broader economy.
On the contrary, the President/Chief Executive Officer, Pearl Awards Nigeria, Mr. Tayo Orekoya, argued that listing of these companies on stock Exchange will deepen the market. “The market capitalisation will sky-rocket. People will see oppourtunities to invest in the market and then you can now be able to effectively compete with other stock Exchanges across Africa.”
Orekoya stated that it is a positive desire that companies in the telecoms sector, and oil sector list in the market adding that any analysis that runs counter to that is self-serving.
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