‘Tax incentives required to list more companies on NGX’

The Capital Market Academics of Nigeria (CMAN) has urged the Federal Government to introduce fiscal incentives to encourage more companies to list on the Nigerian Exchange (NGX).

The President of CMAN, Prof. Uche Uwaleke, made the recommendation on Monday in Abuja at a World Press Conference organised by the association ahead of its second Biennial Conference, noting that only 146 Nigerian companies are listed on the Stock Exchange which is reasonably insignificant

Uwaleke said the incentives should target large indigenous companies and government-owned commercial enterprises to encourage public listing.

He proposed temporary tax incentives for companies undertaking Initial Public Offerings during the early years after listing.

According to him, CMAN also recommends reducing the Company Income Tax for listed companies from 30 per cent to 25 per cent to encourage more public listings, strengthen corporate governance and improve transparency.

He said the proposed incentives would deepen the capital market, expand investment opportunities for Nigerians and enhance corporate disclosure and accountability.

He said, “CMAN believes that a vibrant capital market should not merely serve institutional investors and large corporations. It must become a platform through which ordinary Nigerians, small businesses, start-ups, state governments and infrastructure developers can access long-term capital at competitive costs.

“To achieve this objective, deliberate policy measures are required to deepen the market, broaden participation and enhance liquidity. One important area deserving attention is the expansion of the supply of quality listed securities.

“We, therefore advise the Federal Government to deliberately encourage more companies, particularly large indigenous enterprises and government-owned commercial entities, to list on the Nigerian Exchange.

“To support this objective, we recommend the introduction of carefully designed fiscal incentives.

“Companies undertaking initial public offerings should enjoy temporary tax incentives during the early years following listing. CMAN further recommends that the Company Income Tax applicable to listed companies be reduced from the current 30 per cent to 25 per cent as an incentive for greater public listing, improved corporate governance and enhanced transparency.

“Such incentives would not only deepen the capital market but would also widen investment opportunities for Nigerians while improving the quality of corporate disclosure and accountability,” he said.

Uwaleke expressed optimism that the SEC would soon unveil a new Capital Market Master Plan, describing it as a strategic roadmap for the next phase of the country’s capital market development.

He said the plan would position the market to contribute more effectively to economic diversification, infrastructure financing and inclusive growth.

The CMAN president urged the commission to ensure broad stakeholder consultation in implementing the Master Plan

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