The federal government will soon come up with a
resolution on issues bordering on the collection of stamp duties as well as the
extension of Value Added Tax (VAT) exemption on capital market transactions
among others, the Vice President, Prof. Yemi Osinbajo, has stated.
VAT charges on transactions in the capital market
was suspended in 2014 by then Minister of Finance, Dr. Ngozi Okonjo-Iweala, to
encourage increased trading activities in the market ended on July 24, 2019.
Osinbajo, who was represented by the acting
Director General of the Securities and Exchange Commission (SEC), Ms. Mary
Uduk, at the awards night of the Association of Issuing Houses of Nigeria
(AIHN) in Lagos at the weekend, stated that VAT exemption, stamp duties and
other issues were being addressed currently, adding that a resolution would be
announced very soon.
A statement issued by the SEC Head of Public
Communications, Efe Ebelo, quoted Osinbajo as saying: “We have also commenced work
on other aspects of CAMMIC’s requests that require government intervention, and
would be collaborating with many of you in the capital market community to
successfully address them.
"My office is actually represented on the
CAMMIC. I will therefore be receiving periodic reports on suggestions to
further strengthen our support of your efforts and the market as a whole.
“We all desire a capital market that would broaden
access to economic prosperity by enabling the emergence of financially
responsible citizens, accelerating wealth creation and distribution, providing
capital to small and medium scale enterprises as well as catalysing housing
finance.
“Let me therefore commend the Securities and
Exchange Commission, CAMMIC and the capital market community for the laudable
accomplishments so far recorded in the implementation of the master plan,
especially in the areas of dematerialisation of share certificates, e-dividend
mandate, facilitation of access to alternative investments as well as various
initiatives to enhance the commodities eco-system."
The vice president described the capital market as
essential and key to achieving the economic goals of this administration as
enshrined in the Economic Recovery and Growth Plan (ERGP), noting that the
administration has worked hard to ensure a stable macroeconomic environment,
which is necessary to attract and sustain investment needed to propel the
economy forward.
Osinbajo added: “We see the capital market as an
important driver of our growth agenda, and we will continue to collaborate with
the capital market community to support its efforts to position our market to
where it should be. This administration, and especially my office, has
supported the 10-year Capital Market Master Plan implementation initiatives
since inception in 2015."
He described AIHN as an important player in the
Nigerian capital market, and commended its members for directly contributing to
the economy by aggregating the much-needed funding to support entities in the
private and public sectors, adding that the government and the private sector
need to continue to work together to create sustainable businesses and provide
the necessary jobs for the teeming youths.
The ERGP of thePresident Muhammadu Buhari
administration, he noted, recognised critical sectors for financing to include
agriculture, infrastructure, power and SMEs, but added that the government
cannot do this alone.
According to him, the government must evolve from
an omnibus provider of citizens’ needs into a force for eliminating the
blockages that restrict innovation and market-based solutions.
“In this regard,the government has collaborated
with the capital market community, and particularly with members of your
association, in structuring novel arrangements to fund infrastructure
development through instruments such as the Sukuk Bond, Green Bond,
Infrastructure Funds as well as the planned trading of tax credit instruments.
“Therefore, as you chart the course of the capital
market for the next four years, I assure you of this administration support,
and I look forward to working with you and other stakeholders in the financial
system to actualise a vibrant economy of our dreams,” he added.
In his address, President of AIHN, Mr. Chuka Eseka,
expressed the need for the private sector and the capital market to play
driving roles in achieving economic prosperity and development while partnering
the government at all levels.
He emphasised the need for market operator role in
the financial system value chain to be strengthened to enable the capital
market deliver on its role as a catalyst of economic growth.
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