By Michael Eboh
Registrars in theÂ Nigerian capital market have blamed courier companies for majority of the woes faced by investors, quoted companies and other key stakeholders in the market, especially for the failures in public offers and rights issues and also for delays associated with the distribution of post-offer documents to stakeholders.
Speaking at a public lecture to mark the second anniversary of Bowill Errands Limited, in Lagos, tagged â€œChallenges of economic meltdown on courier companies,â€ the registrars were of the opinion that the ineffectiveness of majority of the courier companies poses serious challenges to the success of public offers and growth of the capital market in the long run.
Mr. Abayomi Sanya, Managing Director, Goldbanc Management Associates Limited, represented by Mrs. Yetunde Famakinwa, a senior executive of the company, disclosed that majority of the courier companies lack the requisite competence to ensure quick and timely delivery of offer documents and other post-offer capital market documents, noting that, to a very large extent, their activities are slow and inefficient.
She said, â€œFrom our experience in the handling of the Union Homes Real Estate Investment Trust (REIT) offer, last year, we discovered that a number of the courier companies are slow and inefficient. We received applications from over 100 courier companies for the despatch of offer documents to prospective investors across the country, from which we eventually chose 10. Some days to the close of the offers, the offer documents have not reached most locations across the country due to the ineffectiveness of these courier companies.â€
Speaking in the same vein, Mr. Bayo Olugbemi, Managing Director/Chief Executive Officer, First Registrars Limited, called for improved service delivery from courier companies, blaming them for the delays associated with despatch of notices and certificates to shareholders.
He identified poor service delivery, unhealthy competition and ineffective regulation of courier firms as the major factors militating against the growth of the courier companies in the country, making it difficult for them to effectively discharge their services.
To this end, the registrars advocated consolidation in the courier industry, advising smaller firms to consider synergies and merging so as to improve on the level and quality of their service delivery and also to be able to withstand competition both locally and internationally.
Mr. Sanya noted that mergers will help boost the financial capacity of the courier firms, improving their operational efficiency and productivity, help them extend their operations to new markets and territories, create new and stronger distribution and market channels and also ensure that the courier firms derive great benefits from economies of scale.