FG To Urged Privatise Government Assets Via Stock Exchange

Operators in the nation’s capital market have called on the Federal Government to use the Nigerian Stock Exchange, NSE to privatise public assets so that majority of Nigerians can benefit from the exercise. The operators noted that using the stock exchange would provide the needed transparency instead of allowing few people to benefit from the privatisation exercise. The operators further charged the Federal Government to channel the privatisation programme through the Nigerian Stock Exchange (NSE), for sustained, diverse economic benefits. The operators were reacting to President Muhammadu Buhari’s statement in the U.S. that his administration would continue with the major privatisation programme of past governments, with “improved moral architecture”. Mr. Oderinde Taiwo, National Coordinator, Proactive Shareholders Association of Nigeria, PROSAN, who spoke to Vanguard commended the president’s pronouncement, said that privatisation must be done through the capital market to achieve the desired results. According to him “Government should involve many Nigerians in the privatisation process and avoid the sale of the country’s agencies to few individuals. Government should use the opportunity to grow the middle class, as many Nigerians should be allowed to participate in the exercise, unlike in the past where companies were sold to just a group of people, in the name of privatisation.” He further stated that people should be subjected to the discipline of the capital market, with full disclosure and accountability, while urging government to avoid the mistakes of the past, stressing that some privatised companies had failed due to lack of transparency in the privatisation process. Mr. Olaleye Williams, the Managing Director, Global View Consult & Investment Ltd, said that the pronouncement was a step in the right direction, if properly implemented. Williams said that the Federal Government should now concentrate on the critical sectors of the economy such as telecommunications, energy, solid minerals, aviation and health, among others.He said that government’s decision to pursue a major privatisation programme would deepen the capital market and increase listings on the NSE. Williams said that effective privatisation would also expand the Over The Counter (OTC) markets on the NASD and the FMDQ. He said that government should revamp the Abuja Commodities Exchange, presently being under- utilised, to boost economic growth and development. Source: vanguardngr