Yemisi Izuora
Governor of Lagos State, Mr. Akinwunmi Ambode, has attributed most of the achievements recorded in the state to the contributions of the Nigerian Stock Exchange (NSE).
He therefore sought for stability of the market to enable it support development which the government aspire.
The governor said one of the ways to stabilise the market is through tax incentives which he says is a major catalyst for greater capital flow into the capital markets.
He also noted that such step if taken would become a key platform to boost capital inflow into small and medium scale enterprises (SME’s).
Ambode who made the recommendation during the visit of a delegation of the UK-Nigeria Emerging Capital Market Task force, led by a former Lord Mayor of the City of London, Sir Roger Gifford expressed optimism that the report on the state of the Nigeria Capital Markets, put together by the Task force, would benefit Lagos and Nigeria on the long run.
The governor commended the team for embarking on an initiative, which he said, had the potential of impacting the transformation of the capital market.
Ambode said it was not accidental that Lagos was the choice destination for the presentation of the report, adding that the state currently held the fifth position as the largest economy in Africa.
“Lagos State has an important role to play in this process, not just as the host of the key market platforms, but as the largest issuers of sub-sovereign bonds in the Nigerian Capital Market.
“Even, when you try to situate the level of bonds that we have taken and the level of growth and development that has taken place in Lagos, it’s very clear that the contribution of the capital market has been immense to us,” Ambode added.
He believed that the capital market had the potential of empowering small and medium scale enterprises and larger companies with greater access to long term capital and introducing innovative financial products.
“We also want the economy of Lagos to expand and as we search to find a congress in cooperating together, as we move forward, we would be having more opportunities for younger Lagosians, people who are actually engaged in small and medium scale entrepreneurship, to have more access to the capital market. This is something I look forward to,” he said.
Gifford said one of the recommendations of the report, concluded in November 2014, was aimed at reducing the cost of capital market transactions and tightening the regulatory enforcement process among others.