The Small and Medium Enterprises, SMEs, are not attracted to list on the Nigerian Stock Exchange, NSE for a number of reasons. Firstly, many of them do not have adequate capital base and structure that will attract investors to invest in them. Secondly, many of the SMEs are struggling with the economic recession and harsh operating environment which had made it difficult for them to breakeven let alone declaring profit.

Two weeks ago, the federal government sacked the Executive Secretary of Financial Reporting Council of Nigeria, FRC, Mr. Jim Obazee, and the entire Council’s Board over issues associated with the FRC’s new Code of Corporate Governance, now suspended.

The drop in Foreign Portfolio Investment (FPI) is closely linked to foreign investors perception of our policy response to dwindling oil revenues in the last two years (caused both by falling price of the product as well as reduced production). Areas of concern for foreign portfolio investors range from our foreign exchange policy and its implementation as it affects ease of exit, the state of our foreign reserves and general sense of our willingness to deal pragmatically with our changing fortunes.

The Securities and Exchange Commission, SEC has set up a committee to fix the deadline for account consolidation by investors who have multiple accounts which were part of the reasons why unclaimed dividend had risen to over N80 billion.

By Peter Egwuatu The National Co-ordinator, Independent Shareholders Association of Nigeria, ISAN, Mr. Adeniyi A Adebisi in this interview with Financial Vanguard spoke on some policies affecting the growth of the Nigerian capital market and also proffered some solutions. Excerpts: What are some of the government policies that affect investment negatively in the capital market? […]