Nigeria at 61: Shareholders seek enhanced business environment

Ahead of the country’s 61st independence anniversary, capital market shareholders have called for an enhanced investment environment to boost investor confidence.

They spoke on Thursday in Lagos, while reviewing the performance of the Nigerian capital market over the years.

Chairman, Issuers and Investors Alternative Dispute Resolution (IIADRI), Mr Moses Igbrude  urged the Federal Government to restore investor confidence by creating the needed enabling environment for businesses to prosper.

Igbrude said that insecurity and foreign exchange challenges should be addressed to enhance investor confidence.

He said that cost of doing business in Nigeria was still high due to lack of infrastructure and multiple taxation.

According to him, the Federal Government and its agents should see the capital markets and companies as partners in progress.

Igbrude also urged the management of the Nigerian Exchange (NGX) Ltd to embrace a robust framework that would encourage more listings on the platform.

“There should be a clear and distinct intrinsic value that quoted companies must have over unquoted companies that is currently lacking.

“They should develop ways to encourage start-ups not only to raise capital but be nurtured for growth,” he added.

Igbrude noted that the NGX had recorded great strides in spite of the enormous challenges in the country.

Also speaking, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said the nation’s capital market had witnessed experimental development and performance.

Omordion said the nation’s capital market had supported economic growth and recovery, wealth creation for participants in spite of numerous challenges.

He highlighted the challenges as regulatory imbalance, low participants, lack of organised investors education, weak investors protection, high cost of transactions and multiple taxation, among others.

On the way forward for the market to contribute more to economic development and growth, Omordion tasked government and regulators on friendly policies that would encourage market participation.

He called for policies that would check high cost of transactions and as well attract new companies to the market.