Nigeria has started tackling the issues regarding stamp duties collection and the extension of the VAT exemption on capital market transactions.
Vice President Yemi Osibanjo reported at the Awards Night of the Association of Issuing Houses of Nigeria, AIHN, held in Lagos.
VAT charges on transactions in the capital market was suspended in 2014 by then Minister of Finance, Dr. Ngozi Okonjo-Iweala to encourage increased trading activities in the market. That waiver ended on July 24, 2019.
Osibanjo who was represented by the Ag. Director General of the Securities and Exchange Commission, SEC, Ms. Mary Uduk, said these and other issues are being addressed currently and a resolution would be announced very soon.
“We have also commenced work on other aspects of CAMMIC’S requests that require government intervention and would be collaborating with many of you in the capital market community to successfully address them. My Office is actually represented on the CAMMIC. I will therefore be receiving periodic reports on suggestions to further strengthen our support of your efforts and the market as a whole.
“We all desire a capital market that would broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and wealth distribution, providing capital to small and medium scale enterprises, and catalyzing housing finance.
“Let me therefore commend the Securities and Exchange Commission, CAMMIC and the capital market community for the laudable accomplishments so far recorded in the implementation of the Master Plan, especially in the areas of dematerialization of share certificates, e-dividend mandate, facilitation of access to alternative investments as well as various initiatives to enhance the commodities eco-system”.
The Vice President described the capital market as essential and key to achieving the economic goals of this administration as enshrined in the Economic Recovery and Growth Plan (ERGP), hence the administration has worked hard to ensure a stable macroeconomic environment, which is necessary to attract and sustain investment that we need to propel our economy forward.