Market operators urge SEC to restructure N90b accrued dividend to boost sector
FOR the nation’s capital market to experience recovery, operators under the umbrella of the Chartered Institute of Stockbrokers (CIS), Association of Stockbroking Houses of Nigeria (ASHON) and Association of Issuing Houses of Nigeria (AIHN) have urged government financial intervention to the tune of N200 billion to shore up market liquidity.

The operators, while addressing newsmen on the state of the market in Lagos yesterday, also urged the Securities and Exchange Commission (SEC) to restructure the N90 billion accrued dividend to form another intervention fund for the market.

The N200 billion intervention funds, which could be made available by the Central Bank of Nigeria (CBN) through the market makers, according to them, would help stabilise the market and hedge against external shocks.

Acting President of the CIS, Oluwaseyi Abe explained that the market would not record any reasonable level of recovery if intervention measures were not put in place to check the unprecedented lull of the past few years.

Abe pointed out that the market has depreciated by 21.25 per cent since the beginning of the year due to sell pressure and investors’ apathy.

“In other jurisdictions, government implements one form of intervention or the other to stabilise the market. Government should provide short-term measure that will put together an intervention window through the CBN.

“All capital market loans are sold at profit. Any intervention must be profitable in the long run. The Nigerian capital market is cyclical in nature like others and wherever that intervention comes from must be replaced, while the details of how it will be handled will be worked out.”