May 20, 2020

COVID-19: Shareholders seek consolidation of 255 stock broking firms



By Peter Egwuatu

Apparently, hinting of the distress in the stockbroking industry as a result of the adverse impacts of the Coronavirus (COVID-19) pandemic across financial markets, an investor group under the aegis of Independent Shareholders Association of Nigeria, ISAN, has moved for the consolidation of the 255 stock broking firms in the country.

The National Co-ordinator of the group, Dr Anthony Omojola, stated that the consolidation has become necessary because only about 10 of the stock broking firms are still very active, and dominating the market.

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He also said: “We expect that recapitalization of the stock broking firms should see some mergers that will bring the number to a manageable size and help to improve the performance of the capital market sector that has also been affected by the coronavirus.

Omojola, who was speaking in a virtual interview, however, said that going forward there is every likelihood that the nation will witness some growth in the areas of Medium and Small Scale Enterprises, SMEs because of some palliatives and tax incentives extended to them in this year’s budget.

While commenting on shareholders expectation for 2020, he stated: ‘’We are concerned with the purchasing power of the people in terms of goods and services which has been seriously affected by the value of naira which is a reality of increase in tariffs, rates and other government policies that have negative effects on the people.”

Vanguard News Nigeria