Why We Pass Bill Demutualising Nigerian Stock Exchange – Speaker Dogara

Nigerian Stock Exchange Building
By Joseph Edegbo
Kaduna( Nigeria) – The Speaker of the  House of Representatives, Yakubu Dogara, has said that NSE bill was passed  to demutualise the Nigerian Stock Exchange and open up the capital market to make it more attractive to investors.
It also ensures  that it conforms to global best practices.
The House, last week, adopted the recommendations of a report by its Committee on Capital Market and Institutions, chaired by Yusuf Ayo Tajudeen on a Bill for an Act to facilitate the development of Nigeria’s Capital Market by enabling the conversion and re-registration of the Nigerian Stock Exchange from a company limited by guarantee to a public company limited by shares; and for related matters.
In a statement issued by his Special Adviser on Media & Public Affairs, Turaki Hassan on Monday , the Speaker said  the demutualisation of the NSE will bring the ordinary Nigerian closer to benefiting from the nation’s commonwealth, since it will make more multinational corporations to get their companies listed, thereby contributing to the development of the economy.
Furthermore,  Dogara noted that the changes made by the House, when concurred to by the Senate as signed into law by the President, will result in  more  involvement of investors in governance, as well as a flexible  governance  structure  in the capital market, thereby making it easy to take decisive  action  in  response  to  changes  in  the
business environment where and when necessary.
Similarly, he said , it would ensure increased access to resources for  capital  investment  raised  by way  of  equity  offerings  or  private  investment.
In June 2016, Dogara became the first sitting speaker to visit the stock exchange in Lagos where he sounded the closing gong and promised to use legislative tools to reposition the capital market for maximum performance.
Dogara had argued that it is unacceptable for a large chunk of the nation’s resources or capital to be heavily concentrated in the hands of few chief executive officers, CEOs, as it further widens the inequality gap, eliminates the middle class and plunges more people into abject poverty, thereby posing serious threat to the sustenance and survival of democracy.
He further maintained that deepening of Nigeria’s capital market will enhance wealth redistribution and deliberately allow it to trickle down to the ordinary people as against the practice where multinational corporations repatriate their profits 100 percent to their own countries without investing a dime back to the Nigerian economy.
The Bill will now be transmitted to the Senate for concurrence in a few days, according to the statement.

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