By Providence Obuh

Deadline for increases in minimum capital requirements for capital market operators is tomorrow, December 31, 2014 as announced by the Securities and Exchange Commission (SEC) and a new minimum capital structure is expected to take off by January 1, 2015. Under the new requirements, stock broking firms in the country are expected to raise their capital base to N300 million from N70 million.

This move will reduce the number of stock broking firms in the country as well as streamline their operations.

I n this interview with Investors Forum, shareholders share their opinions on the move. Excerpts:

Alhaji Gbadebo Olatokunbo – Nigeria Shareholders Solidarity Association of Nigeria

There is no place in the world where there is no regulation of any organization. I Am quite sure SEC and the stock broking firms must have been talking for some time before they came up with the recapitalisation idea. In my view as a layman, I think that the stock broking firms were not prepared. They thought it was a joke. Since they have been talking on this issue I expect that they too should be prepared. If you are asked to recapitalise there will be changes.

If there is a need for extension, I think they would have settled that before now, every person is under regulation in one way or the other, so I don’t expect less from them. I support what SEC is doing, I commend the Central Bank of Nigeria’s effort because whenever they come up with an initiative you see other regulators following in that direction, you will see some moving ahead or some lagging behind. In Nigeria we like to pretend, we wait for opportunities to capitalise on.

There is always a way out, recapitalisation has nothing to do with job loss. We like excuses, people fail to look into certain things in this country. The regulators did not ask anybody to close shop, rather people can come under one umbrella   and form a name and begin to operate, everybody wants to keep his own identity nobody wants to move with time, there is always a way out in solving problems if we are open to changes.

The recapitalization,   I think will not lead to retrenching of staff. I believe there will be understanding between investors and if they wish to come together under one umbrella, they can do that and answer one name. People are only concerned about keeping name and not looking at the positive side. Another thing is that people rely so much on their godfathers instead of doing the right thing.There are some government functionaries that if government has been listening to them, this economy would have gone backward. I want us to start facing issues squarely and stop being sentimental. Other countries are going forward and they also have issues disturbing them as they are making sacrifice to their countries but we don’t want it so, we are just complaining. Here in Nigeria, we don’t move with time we just want to remain where we are and it can’t be so