The Senate Committee on Capital Market and Institutions, Tuesday, called for the listing of power generation and distribution companies on the capital market.
The call was made on the trading floor of the Nigerian exchange during a closing-gong ceremony in honour of the federal lawmakers.
Chairman, Senate Committee on Capital Market & Institutions, Senator Osita Izunaso, said, “the stock exchange and the capital market are the future of our economy, it is the future of our generation and it is something that we must all support. We also have to encourage other companies to do so. Those that are listed like Dangote, we congratulate them.
“I will also request other people who have not listed to do so. On our part as legislators, we will also advise the executive to use the low-hanging fruits to advise the DisCos, the GenCos that are not listed to come to the capital market, so we can all help to grow the economy.”
In his welcome address, the NGX Group chairman, Dr Umaru Kwairanga, said “This visit reflects the interest which the legislators have in our market”.
He said there is a legislative agenda that will force the NNPCL, the NLNG, and the PFAs to list on the market.
The Director-General of the Securities and Exchange Commission, Lamido Yuguda, said Nigeria needs the capital market.
He added, “We have the market responding to the new economic policies on the removal of fuel subsidy, which is a stimulus on the fiscal side of the economy and we also have the policy on the unification of the forex market. It is a very important policy.
“So these two policies are generating more confidence among investors, because you are dealing with one price for foreign exchange and you are also dealing with the situation where subsidy has been removed, so you expect a reduction in the overall government deficit especially in medium term. This year, we could see a reduction but next year and the one after, we can actually see a more sustained reductions in deficits and this is really the crowding out of private sector that is being relaxed.”
