Capital market operators seek tax incentive to boost liquidity

Some capital market operators on Monday called on the Federal Government to introduce policies and tax incentives that would deepen activities at the Nigerian Stock Exchange (NSE).

They said in separate interviews in Lagos that government, in line with developments in the global market, should introduce incentives that would boost market based liquidity.

Mr Olaleye Williams, the Managing Director, GlobalView Consult & Investments Ltd., said that tax incentives would encourage more companies to seek listing on the NSE, thereby increasing the market depth.

Williams said that government should pursue policies that would increase the participation of the National Pension Commission (PENCOM) through the Pension Fund Administrators (PFAs) in the market.

“It is imperative for government to think of incentives that can be given to PENCOM and other institutional investors to make them patronize the market better,” Williams said.

He also stressed the need for proactive regulation and smart monitoring by the market regulators to increase investors’ confidence.

Mr Emeka Madubuike, the Managing Director, Compass Securities Investment Ltd., said that government should introduce policies that would help block revenue leakages in the country.

Madubuike called for discipline, accountability and transparency among public office holders to reduce impunity.

According to him, government should also develop other sectors of the economy to increase revenue generation and resist the clamour for further devaluation of the nation’s currency.

“Devaluation is not what any country will like to do because it will affect the market and the nation’s economic growth,” Madubuike said.

According to him, government should look for other sources of income and reduce reliance on oil revenue.

He added: “there should be change in attitude, change in culture and on how things are done in the country.”

Meanwhile, a turnover of 1.26 billion shares worth N15.78 billion was traded by investors in 17,016 deals last week against 1.27 billion valued N17.57 billion in 18,993 deals in the preceding week.

The Financial Services Industry led the activity chart with 831.93 million shares valued N8.92 billion traded in 9,602 deals.