FG to restore exemption to capital market – TheNigerialawyer

The Federal Government says it is taking steps to tackle issues
regarding stamp duties collection and the extension of the VAT
exemption on capital market transactions.

The Vice President, Prof. Yemi Osibanjo, stated this while
speaking at the Awards Night of the Association of Issuing Houses
of Nigeria in Lagos.

VAT charges on transactions in the capital market were suspended
in 2014 by then Minister of Finance, Dr Ngozi Okonjo-Iweala, to
encourage increased trading activities in the market.

That waiver ended on July 24, 2019 with stakeholders clamouring
for an extension.

Osibanjo, who was represented by the acting Director-General,
Securities and Exchange Commission, Ms Mary Uduk, said these and
other issues were being addressed and that a resolution would be
announced very soon.

He said, “We have commenced work on other aspects of the Capital
Market Master Plan Implementation Council’s requests that require
government intervention.

“We will be collaborating with many of you in the capital market
community to successfully address them. My office is actually
represented on the CAMMIC. I will, therefore, be receiving periodic
reports on suggestions to further strengthen our support of your
efforts and the market as a whole.

“We all desire a capital market that will broaden access to
economic prosperity by enabling the emergence of financially
responsible citizens, accelerating wealth creation and wealth
distribution, providing capital to small and medium scale
enterprises, and catalysing housing finance.”

Osinbajo commended SEC, CAMMIC and the capital market community
for the laudable accomplishments so far recorded in the
implementation of the master plan, especially in the areas of
dematerialisation of share certificates,

He described the capital market as essential and key to
achieving the economic goals of the current administration as
enshrined in the Economic Recovery and Growth Plan, saying the
administration had worked hard to ensure a stable macroeconomic
environment, which was necessary to attract and sustain investment
needed to propel the economy forward.

Osinbajo said, “We see the capital market as an important driver
of our growth agenda and we will continue to collaborate with the
capital market community to support its efforts to positioning our
market to where it should be.

“This administration, and especially my office, has supported
the 10-year Capital Market Master Plan implementation initiatives
since inception in 2015.

“The AIHN is an important player in the Nigerian capital market
and I commend its members for directly contributing to the economy
by aggregating the much-needed funding to support entities in the
private and public sectors.”

Osinbajo noted that there was a need for the government and the
private sector to continue to work together to create sustainable
businesses and provide the necessary jobs for the teeming
youths.

He noted that the ERGP of President Muhammadu Buhari’s
administration recognised critical sectors for financing to include
agriculture, infrastructure, power and SMEs, but added that the
government could not do it alone.

According to him, government must evolve from an omnibus
provider of citizens’ needs into a force for eliminating the
blockages that restrict innovation and market-based solutions.

Osinbajo stated that the government had collaborated with the
capital market community, and particularly with members of the
AIHN, in structuring novel arrangements to fund infrastructure
development through instruments such as the FGN Sukuk Bond, FGN
Green Bond, Infrastructure Funds as well as the planned trading of
tax credit instruments.

He said, “Therefore, as you chart the course of the capital
market for the next four years, I assure you of this
administration’s support and I look forward to working with you and
other stakeholders in the financial system to actualise a vibrant
economy of our dreams.”

The President, AIHN, Mr Chuka Eseka, expressed the need for the
private sector and the capital market to play driving roles in
achieving economic prosperity and development while partnering with
the government at all levels.

He emphasised the need for market operator role in the financial
system value chain to be strengthened to enable the capital market
to deliver on its role as a catalyst of economic growth.

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