KPMG: Finance Act Implementation to Stimulate Capital Market Growth

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Bamidele Famoofo

The removal of multiple tax footprints for securities lending and real estate investment schemes by the finance bill recently signed in law by the federal government of Nigeria is expected to stimulate activities in some segments of the Nigerian capital market.

Partner & Head, tax, regulatory and people services, KPMG, Mr. Wole Obayomi, made the disclosure at a symposium hosted by the Nigerian Stock Exchange (NSE) last Monday.

Obayomi said the generous incentives for the small and medium enterprises (SMEs) in the Finance Act coupled with the launching of the’ growth board’ for capital-raising by that sector from the Nigerian Stock Exchange (NSE) are timely interventions to drive the growth of the economy through the SMEs.

Obayomi called on all stakeholders to embrace the Finance Act 2019, which he described as a landmark legislation, to ensure it achieves its laudable objectives.

Meanwhile, Chief Executive Officer, NSE, Mr. Oscar Onyema, who hosted the symposium, said the signing of the Finance Bill into law represents a landmark achievement for the Nigerian capital market.

The bill has the objectives to promote fiscal equity, align domestic laws with global best practices, support MSMEs, increase government revenues and incentivize activities in the capital market.

Onyema said the exchange alongside Securities and Exchange Commission (SEC) as well as other capital market stakeholders, has, since 2014, been at the forefront of advocacy with policy makers and tax authorities for favourable tax structures for primary and secondary markets activities in the Nigerian capital market.

Onyema noted the collaboration with leading tax expert, KPMG, was part of the efforts of the Exchange to support the growth of the Nigerian economy.

KPMG Nigeria was meant to highlight the implications of Nigeria’s Finance Bill 2019 passed into law by the National Assembly in October 2019 at the event, which had in attendance, all stakeholders of the market.