By Chukwuma Umeorah
The Institute of Capital Market Registrars (ICMR) has urged the federal government to consider listing the Nigerian National Petroleum Corporation Limited (NNPCL) on the Nigerian Exchange Limited (NGX) as a strategic move to bolster the capital market.
The President of the ICMR, Seyi Owoturo, in an interview with journalists on Monday, emphasised the significant impact such a move could have on the nation’s economy.
Owoturo pointed to the dividends declared by Saudi Aramco, a leading Saudi Arabian oil company, whose earnings last year alone surpassed the entirety of Nigeria’s national budget. Drawing parallels between Saudi Aramco and NNPCL, he emphasised the considerable value NNPC could bring to the capital market if it were publicly listed.
“Listing NNPC on the Nigerian stock exchange would not only enhance transparency in its operations but also instill confidence in investors,” Owoturo said.
He cited the success stories of listed telecommunication companies like MTN, Airtel and Glo and its impact on the capital market urging other sectors, including power companies, to follow suit.
“Today, MTN is a mega business, the second most capitalized company in Nigeria. This is a clear demonstration that listing on the market does not only increase the potential for growth for the company, but delivers value to investors while contributing significantly to the nation’s economy,” he explained.
In addition to increased listings, Owoturo stressed the importance of government intervention in providing essential infrastructure such as electricity, security, and roads. He emphasized the multiplier effect of such interventions on the economy, asserting that empowering citizens would lead to increased purchasing power, benefiting both individuals and businesses alike.
“Empower more people and you would see the effect on companies that produce and provide basic essentials irrespective of the sector they belong. These companies would in turn pay more taxes as a result of increased patronage and revenue thereby adding to government revenue sources,” he stated, noting that the people themselves are the real economy.
Addressing challenges within the sector, Owoturo highlighted the need for synergy among identity management systems like the National Identification Number (NIN) and Bank Verification Number (BVN) to streamline investor onboarding processes.
He noted that such harmonization would expedite operations for capital market registrars and stakeholders, particularly in resolving issues with unclaimed dividends which according to him currently stands above N200 billion.