House of Reps blames CBN, NSE on slide in stock

The House of Representatives committee on capital market and institutions, yesterday blamed the Central Bank of Nigeria (CBN), for the persistent downward slide of share prices in the Nigerians Stock Exchange (NSE), saying the development has resulted in huge loss of billions of investments in the nation’s capital market.

Chairman, committee on capital market, Tajudeen Yusuf (PDP, Kogi) laid the blame at a public hearing organised by the committee on “Downward trend of the Nigerian Stock Market” and urgent need to address the vex issues of unclaimed dividends and its effect on the capital market.”

Yusuf said the House was concerned about the rapid slide of investments in the capital market, noting that the public hearing will give the stakeholders, including the legislature, regulatory authorities, stockbrokers and shareholders, the opportunity to cross fertilize ideas, with a view to re-position the capital market.

He also informed the stakeholders that part of the committee’s agenda in the 8th Assembly is to consistently seek, support and come up with realistic initiatives and measures, through which the nation’s economy can experience growth and development.

In his opening remarks, Speaker, Yakubu Dogara identified the persistent downward trend in the Nigerian Stock Exchange and the issue of unclaimed dividends by investors as two issues posing serious national challenges.

Dogara also highlighted the effect that a persistent downward fall in the price of crude oil in the international market has had on the Nigeria stock market.

Meanwhile, stakeholders have blamed the CBN for the downward trend in the stock market. Among them were, Presidents of Institute of Capital Market Registrars, Dr David Ogogo, his Independent Shareholders Association of Nigeria counterpart, Amb. Olufemi Timothy and Emeka Mmadubike, of the Association of Registered Stockbrokers.

While blaming the Federal Government for not injecting funds to bail out the stock market, they also identified poor regulation, including the injection of slush funds by commercial banks and CBN policy summersault, as the reason for the collapse of the nation’s capital market.