FG Should Provide Laws for State-Owned Enterprises to List on The NGX

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Tuesday, September 21, 2021 / 10:35 AM / Ottoabasi Abasiekong  for WebTV / Header Image Credit: WebTV

 

With President Muhammadu Buhari's, approval of the Nigerian National Petroleum Corporation incorporated, a pathway exists for the commercialization of a few state-owned enterprises with their listing on the Nigeria Exchange Limited (NGX).

 

Mr. Charles Fakrogha, the Chief Operating Officer of Supra Commercial Trust Limited, made this point while commenting on the 2021 dividend payments and opportunities for more earnings for Nigerians.


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According to him, the political will of the Federal Government to create a comfortable environment for state-owned enterprises to come to the stock market is crucial to domestic capital formation.

 

Regarding the NNPC, he noted that more government-owned companies could access the domestic capital market if the government provides a stable environment and allows the company to run profitably.

 

Fakrogha also added that the Nigeria Exchange Limited had a vital role in listing viable state enterprises on the bourse. He reiterated that the capital market provides the platform for listed companies to operate with a high level of compliance to the corporate governance code and achieve transparency.

 

At the macro-economic level, the COO of Supra Commercial Trust Limited pointed out the need for issues like infrastructure and insecurity in Nigeria. He believed that if these two issues highlighted are given the top priority they deserve, more companies will be encouraged to list in the market.

 

He decried that companies currently operating in Nigeria find it difficult to work, get raw materials,  sell at an affordable rate, and profit.


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Speaking further, he said, "A lot of sectors are still evolving in terms of technology and a key indicator or index that monitors performance levels that fit in with the trends. For example, we do not have a setup for FinTech or an index for technology; we also have few Telecom companies and thus cannot create an accurate index for them as an industry".

 

He tasked capital market operators and regulators to introduce innovations that can boost investor confidence, encouraging more activities in the capital market.

 

Looking at the 2021 Nigeria Exchange Limited report on dividend payments, he noted that most of the companies listed in the report contributed to the economy by paying taxes and their corporate social responsibility actions.


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