By Peter Egwuatu
Shareholders, under the aegis of Western Icon Shareholders Association of Nigeria, WISAN have called on the Federal Government to set up a steering committee that would address some of the policies that have hindered the growth of the capital market and the economy in general.
The President of Western Icon Association of Nigeria, Mr. Olusegun Ade Owolabi, who disclosed the decisions taken by the shareholders’ group said “Some issues are germane and should be revisited if the Federal Government is serious about bringing back the lost glory of the Nigerian capital market. There is no gainsaying in the fact that the engine house for growth of any economy is the capital market.
Our market has been toiling since all these years, with market capitalization dropping dismally on a daily basis. For the market to regain sound health like “a sick patient” is for the incoming government to address some key and critical issues.”
Continuing, he said “ To achieve the objectives of applying capital market to turn around the economy is very simple like Panadol that cures headache. There are some decisions that have been taken by the regulators that have caused harm in the time past.
We therefore suggest that the incoming administration should appoint a steering committee to revisit some policies taken by Central Bank of Nigeria, CBN, Securities and Exchange Commission, SEC, and Financial Regulatory Council, FRC with a view to reversing some and strengthen the market with formidable recommendations by experts drawn from stakeholders.”
Owolabi , who revealed the decisions of his group said “ One of the areas the steering committee should address is “Due Process”. Shareholders or investors have been punished with unpopular policies and decisions by the regulators. A case study that is very fresh in public domain is CBN’s decision to sell some banks as a fall-out to undercapitalization.
How could CBN wake up in a day and decide to sell some banks undercapitalized without recourse to the owners of these banks. That was the beginning of injustice which has adversely affected the growth of the capital market. In a situation of uncertainty and policy instability, no reasonable investor will come near the market.”
Continuing, he said “Sincerely under this condition of policy instability, the market cannot grow. Check the list of robust and active capital market in the world, and you would be amazed to know what their outstanding peculiarities which are as follows: Utmost respect for shareholders’ rights, Shareholders collaborative participation in decisions making, Shared responsibilities, Collective interests of the stakeholders in a capsule of policy making.”