NGX says tax reforms will harness capital market potential

The CEO of Nigerian Exchange Limited, Mr. Temi Popoola has said that the current tax reforms being implemented by President Tinubu’s administration will harness the potential of the capital market to create value and achieve its objectives while delivering returns to investors.

Popoola who stated this while speaking on the sidelines of the Roadshow to BBC in London affirmed that NGX is fully poised to lend its support to the Federal Government’s objectives.

He noted that NGX aims to achieve this by mobilizing capital, which, as he put it, “will address government challenges and foster wealth creation for Nigerians”.

According to him, the assertion comes in the wake of President Bola Tinubu’s ceremonial ringing of the Closing Bell at the NASDAQ Exchange in New York last week, marking a significant moment in the NGX International Non-Deal Roadshow supported by Stanbic IBTC, CardinalStone Partners, and Chapel Hill Denham.

Privatization initiatives

Popoola highlighted the privatization initiatives in the telecommunications sector as a compelling illustration of the concept.

He pointed out that President Tinubu’s administration, presently engaged in tax reforms to boost revenue, can harness the potential of the capital market to create value and simultaneously achieve its objectives while delivering returns to investors.

He explained that as part of ongoing endeavours to attract foreign investors to the Nigerian economy, Mr Wale Edun, the Minister of Finance and the Coordinating Minister of the Economy, ceremonially rang the Opening Bell at the London Stock Exchange on Monday, 25 September 2023 to spotlight the London arm of the Roadshow.

COVID-19 pandemic: Popoola explained that since the onset of the COVID-19 pandemic in 2020, foreign investment in Nigeria has experienced a significant decline, mirroring the trend observed in other emerging economies during the same period.

  • “What we are trying to achieve is to emphasize to investors that Nigeria is open for business and reinforce that the enormity of the challenges is clear, and work has begun to address all the issues.
  • Whether capital inflows or foreign exchange illiquidity, NGX remains a veritable platform for solving these economic challenges,” the CEO added.

According to Popoola, encouraging listings can also address the government’s problems including tax revenues, and create value for shareholders as listed companies have better governance and are more accountable with tax payment.

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