Minister of Finance, Dr. Ngozi Okonjo-Iweala,
By Goddy Egene
Rising from a meeting last week, the chief executive officers of stockbroking firms under the aegis of Association of Stockbroking Houses of Nigeria (ASHON) unanimously agreed to embrace the N22.6 billion forbearance package by the Federal Government of Nigeria as part of efforts to revitalise the capital market.
The forbearance package was announced by the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, last Monday based on the recommendation of the Committee set up on the issue.
Speaking on the outcome of brokers’ meeting to examine the package and its conditions attached, Chairman of ASHON, Chairman of the ASHON, Mr. Emeka Madubuike, said it was a kind gesture was highly welcomed and would be embraced by the stockbroking community.
According to him, ASHON, over the last three years had solicited for the forbearance on the margin accounts of some of its members with banks now taken over by AMCON.
He noted that the margin accounts came about from the fact that bank failed to exercise the margin calls as required by the arrangement in the face of falling share prices.
He therefore commended President Goodluck Jonathan, the Coordinating Minister for the Economy and Minister of Finance, Ngozi Okonjo-Iweala and all those who made the package a reality.
“This singular act by the Federal Government gives us in the capital market a lot of hope that the market will begin to play its pivotal role as the engine room for the transformation of our nation’s economy. We trust the government will continue to look for other ways to resuscitate the capital Market to enable it compliment the various reform programmes of government and to become an integral component for the growth and development of the economy,” Madubuike said.
He said going forward, ASHON would work along with other stakeholders in the capital market, and “continue to initiate and pursue processes, procedures and policies in the areas of risk management, investors’ protection, corporate governance and professional conduct, to ensure there will be no reoccurrence of the situation that led us to this position.”