DG SEC – Says Power, Telecom Firms Must Go Public
Mounir Gwarzor, Director-General of Securities and Exchange Commission, (SEC) says power generation and distribution companies, and telecommunications firms operating in the country must be quoted on the Nigerian Stock Exchange and/or the NASD OTC securities market.
Gwarzo said this during the NSE/London Stock Exchange dual listing conference held in Lagos on Tuesday. The theme of the conference was ‘Leveraging cross-border capital markets for sustainable growth’
He said the continued absence of the companies from the NSE and NASD was making the country to lose huge revenue through taxation.
“Very high percentage of taxes paid to the government comes from quoted firms. It is, therefore, in the interest of the country that these companies and more are listed on these markets,” he said.
The SEC DG said the call for listing by the firms was hinged on the need to give the capital market the required depth to drive economic growth for the country.
Speaking on the NSE/LSE dual listing move, Gwarzo said foreign partnerships were critical in driving competitiveness, effectiveness and growth of local markets, adding that the partnership was a welcome development.
Also addressing stakeholders at the conference, the Chief Executive Officer, NSE, Oscar Onyema, said that the capital markets were critical to the sustainability of growth and development in an economy, noting that one of the things that Nigeria and Africa needed to sustain growth was a solid and vibrant capital market ecosystem that would attract investment and unlock the potential that existed in the economy.
Onyema added that, “Capital markets increase the proportion of long-term savings that are channelled to long-term investments.
“Our collaboration with the LSE is deliberate and strategic. It is geared towards encouraging seamless cross-border access between our capital markets to ultimately drive deeper capital markets that enable capital formation for businesses and governments; create larger liquidity pools and greater competitiveness for our investors; and enhance capacity and promote diversity of investment products to meet the needs of a wide range of investors and issuers” he said.