THE Federal House of Representatives (FHR) Committee on Capital Market, recently took the position that operators of Global System for Mobile communications, International Oil Companies, and Digital Satellite Television service providers in Nigeria, be compelled to list part of their shares on the Nigerian Stock Exchange (NSE). The reasons for this decision are not far-fetched.It is primarily to enable Nigerian consumers become stakeholders in the successes those companies have achieved in Nigeria. To ensure full compliance, an enabling law that would compel the companies to list part of their shares on the NSE is in the offing.Compelling companies to enlist on the NSE is in the overall interest of Nigerians. It is a patriotic measure which we applaud, because it will ensure Nigerians benefit from the wealth of companies they have contributed to, through patronage. Nigerians' contributions to the success of foreign telecommunications service providers for instance, should benefit the people through such progressive legislation. Ultimately, a win-win situation between the companies and the Nigerian public is created.The envisaged law will promote wealth and income re-distribution, create transparent platform for ordinary Nigerians to own part of the shares of the companies, deepen the country's stock market and give clear signals that Nigeria's capital market is not just about shares in the banking sector. Foreign companies will be more accountable and it will be more difficult for them to either evade or under-estimate their taxes.It is noteworthy that this position by the FHR, is also shared by the Nigerian Economic Summit Group (NESG) and top businessmen in the corporate world, whose companies are quoted on the stock exchange. The measure will reduce the amount of profit repatriated abroad my multinational companies operating in the country.This proposal, however, hasn't received unanimous support of the investing public, particularly those with foreign connection. Members of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) are opposed to it with the supposition that it could affect in-flow of Foreign Direct Investment (FDI) into the country. We are of the view that this is an unfounded fear. International investors are knowledgeable about laws which promote good corporate governance. The envisaged law seeks to promote globally-recognised best practices in the corporate world and in the economies that operate rationally. For instance, in South Africa, there is a legislation that mandates companies to promote empowerment in Black communities. India suspended permits for foreign retail trading giants because of fears raised by the public that local retailers were being squeezed out of business.Governments everywhere seek to protect the interests of their citizens. And this is precisely what the proposed legislation seeks to do for Nigerians.We commend the FHR for advancing the interests of Nigerians by this progressive proposed legislation. If carried through, this legislation will promote improved Corporate Social Responsibility (CSR) and engender public confidence in companies, as well as strengthen relationships with Nigerian consumers.The proposed law must also be applied to the privatised government economic and business concerns such as the successor-companies of thePower Holding Company of Nigeria (PHCN). Government must ensure that a certain percentage of the privatised companies are kept aside for sale to the Nigerian public, at a pre-determined future date. Bidding companies must not be allowed to purchase the residual shares of the sold-off government companies. The shares should be sold to the Nigerian public on the NSE. This would promote a robust and broad-based ownership of the companies. Ensuring full compliance by foreign companies must be built into the proposed law. We take it for granted that the Senate will concur with the proposed legislation, just as we are confident that the President, Dr. Goodluck Jonathan, will give it an express assent.
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