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Chinwendu Obienyi
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, Monday, promised that the Federal Government would introduce more tax incentives to boost investments in the Nigerian capital market.
She also said her ministry would work with the Nigerian Stock Exchange (NSE) to put policies in place to enhance the growth of the market.
Speaking during a visit to the NSE yesterday, Ahmed said it was a privilege for her to be on the floor of the stock exchange, which drives activities in a capital market regarded as the growth engine of any economy.
According to her, the government had in past worked closely with the NSE in various forms, noting that some tax provisions have been made in the Finance Act of 2019 to assist deepen the market in areas of real estate investment schemes (REITS) and securities lending.
“We have asked the NSE to continue to work with us so that we can encourage Nigerians to investment more in the capital market. We have a lot of resources locally and we are working with the NSE to ensure we mobilise resources through the market. Any policy that government needs to put in place to enable the growth of the market, we will do that,” she said.
She explained that while the Finance Act of 2019 had taken care of some incentives, the next Finance Act will make provisions for incentives that would enable the market to be attractive to investors. She declared that every Appropriation Bill will come with Finance Bill every year.
Responding to the capital market operators’ request to defer the planned recapitalisation exercise in the market, the minister said it would make them stronger and compete better in the market.
According to her, with the demutualisation of the NSE, coming through soon, stockbroking firms would be have more businesses to do and therefore needed to recapitalise to operate better.
Also responding to comments by stockbrokers that several ministers had in past made promises to the NSE without fulfiling them, Ahmed assured the market operators that her visit would be different because she remains committed to ensuring that the capital market become the tool to unlocking the nation’s economic potential.
In his welcome address, the Chief Executive Officer of NSE, Mr. Oscar Onyema said the Exchange was delighted and honoured to host the minister and her delegation to the event, themed : ‘A day at the NSE.’
“ It is one in a series of the NSE’s renewed government relations, where key government stakeholders interact with the capital market community on important issues that affect both parties in terms of Nigeria’s economic management and policy reforms, ease of doing business environment, foreign and local investment attractiveness, capital market and ultimately economic growth and development,” he said.
