Stockbrokers Want National Assets Sold Through Capital Market

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Stockbrokers have said the federal government should sell its assets through the capital so more Nigerians can benefit from the exercise. The federal government is considering selling some of its assets to raise funds as part of efforts to come out of the economic recession.

Speaking on behalf of the stockbrokers on Wednesday in Lagos, the Chairman, Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike said: “If the government wants to sell any of its assets as being contemplated, it should do so through the capital market so that Nigerian investors can become part owners of the assets.”

Some financial analysts have advised the government to borrow, sell assets to get funds that would be invested in infrastructure to move the economy out of recession. Although the government said it was yet to take a final decision on the sale of assets, the Senate has voted against the move.
However, Madubuike said should the government final decides to dispose of any assets, that should be done through the market.

Similarly, the President of Chartered Institute of Stockbrokers (CIS), Mr. Oluwaseyi Abe said nothing was wrong in selling national assets that are under performing to save the economy.

“I believe there is nothing wrong if the government plans to sell assets that are not performing optimally. But caution should be applied in taking this decision. The country will surely come out of the recession if actions and measures being taken by the government are properly executed. I see us coming out of recession latest from the first quarter of next year,” Abe said.

The CIS boss had said the nation’s capital market can provide the needed capital that can take the country out of the current economic recession.

“The capital market can provide funds for the government and corporates. It has been doing so in the past and I believe the market has the potential to provide what funding needs of government and corporate bodies. What we need is products that will attract the capital from investors both domestically and foreign,” Abe said.

Meanwhile, the Nigerian Stock Exchange (NSE) All Share Index (NSE ASI) appreciated marginally by 0.04 per cent to close at 28,247.56 points. The appreciation recorded in the share prices of Unilever, Nestle, Forte Oil, Seplat and Oando were responsible for the gain.