The Association of issuing Houses of Nigeria (AIHN) has urged the various trade groups in the capital market to deepen collaboration among themselves to build a more vibrant market.
The outgoing Chairman of the Association, Victor Ogiemwonyi who stated this during the group’s yearly general meeting in Lagos, admonished all market groups to work with greater collaboration, noting that one firm alone cannot make a market.
Ogiemwonyi, who has served the institute for two years, also implored the members to support and cooperate with the incoming executives.
“I will like to encourage us all to continue to work with greater collaboration, knowing that one firm alone can not make a market.”
The Chairman, in a chat with The Guardian on issuers apathy in stock market, said: “The market is very soft for issuing process in the last one or two years. There has not been any major issuing activities, and that has been a major challenge.
“The economy is slowing down rapidly and the stock market is getting such signals. Government should give incentive because business environment is very difficult. We have a much better business environment and virtually every company is in trouble, because there is severe slow down.
“Policy side’s being slow in coming out, and they have not being consistent. So, policy inconsistency, and slow down are the major challenges.
“Once the environment is friendly, legislators put in place properly, policies are consistent, and people will do business in Nigeria.”
He explained that the association’s total income grew by 8.5 per cent to N38.34 million, compared to 35.35 percent achieved 2014, while N21.05 million was realised from members subscription during the period under review, up from N18.55million in 2014.
Total expenses rose to N24.38 million in 2015 from N22.08 million in 2014.
He explained that N13.44 million was transferred to the accumulated fund, which increased to N195.75 million.
“As at the date of the AGM, we have over N200 million in net assets. N150 million of this amount is invested in 12.5 per cent FGN 2026 bond. The committee took this decision to ensure that the overheads of the association will be paid from income of this bond for the next 10 years,” he said.
Reviewing its activities, Ogiemwonyi explained that the association threw its weight on the Securities and Exchange Commission (SEC) initiative to implement the new minimum capital requirement for capital market operator and made recommendations to the commission.
“In order to revitalize the market, we co-hosted a day dialogue on the capital market and the 2015 federal budget with the Chartered Institute of Stockbrokers and Association of Stockbroking Houses of Nigeria.
“We initiated the establishment of a strong capital market group that will be able to speak in one voice on issues bordering on capital market, engaged the Law Society of England and Wales on issues around the integrity of our market and we actively supported annual capital market conference,” he added.
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