TheCable

Yakubu Dogara, speaker of the federal house of representatives, says all companies doing business in Nigeria should be listed on the Nigerian Stock Exchange (NSE).

Speaking at the closing gong of the Nigerian bourse on Friday, Dogara said that the parliament would strengthen capital market laws to empower regulators to sanction erring operators.

“Today’s visit underpins the fact that we pay serious attention to the Nigerian capital market. For us to deepen the capital market, all companies doing busy in Nigeria should list on Nigerian Stock Exchange,” he said.

Referring to multinationals, he said “to get these companies to list, we will adopt the carrot and stick approach”.

He said that capital market regulators needed to be on top of their responsibilities in order to boost investors’ confidence in the market.

Dogara at the Bourse

Dogara said that capital market regulators should be empowered to sanction operators that arbitrarily abuse the market so as to regain investors’ confidence.

He said it was important for the investors to have confidence that those who perpetuate infractions in the market would be dealt with.

He further explained that insider dealings were the major cause of capital market crash, noting that people that abused the market in the past were not adequately sanctioned.

“We need to deepen the market, we need to create and sustain confidence in the market and for confidence to come back we need to do more. When we start sanctioning confidence will come back to the market.”

He explained that the house would likely pass laws that would compel multinationals, oil and gas companies, telecommunication firms and privatised companies to list on NSE to deepen the market.

Dogara noted that the “flow of resources from citizens to these companies is what makes them rich”.

He added that this would also engender economic prosperity.

According to him, the house will look at the agreements between some of these companies and the Bureau for Public Enterprises.

He said where it was discovered that they flouted the agreement on listing, they would forced to do or risk being penalised.

“There is an ongoing discussion about strengthening those clauses to henceforth ensure that we emphasise that once a company is privatised you must list part of the equity in the market.”

Dogara said that the house would ensure that this was done in respective of spectrum given out telecommunication companies, noting that the spectrum given out to them would soon expire.

“We will ensure that this will be a cardinal requirement that will compel them to list some part of the equity in the market,” he said.

Aigboje Aig-Imoukhuede, NSE council president, described Dogara’s visit as historic, noting that the parliament had shown concern about the economy and the capital market.

“It is very gratifying that you are out to create a conducive environment for the market,” Aig-Imoukhuede said.

He assured the speaker that the capital market operators would not relent and would do everything to ensure that the market becomes the best on the continent.