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Multinational Oil & Gas, Telecomms Companies Will List on NSE – FG

By on May 4, 2012

Multinational companies operating in the Oil & Gas and Telecommunications sectors will soon be compelled by the Federal Government to list their shares on the Nigerian Stock Exchange.

The Minister of State for Finance, Dr. Yerima Ngama, disclosed this in Abuja during the ministerial platform for the first year anniversary of President Goodluck Jonathan’s administration.

He said that the era of foreign companies coming to make huge profits in Nigeria without Nigerians benefitting from these profits would soon be over.

He said, “We are doing a lot to revive the capital market. We know that most of us who invested in the market have lost a lot not because these companies are not known yet. In fact, many of the intrinsic values of their shares are higher than their market value, but what is happening is that there is a loss of confidence by Nigerians.

“As it stands today, 81 per cent of all the trading that goes on at the NSE is done by foreign investors; Nigerians are having a lukewarm attitude because of what happened at the capital market before.”

“We are also trying to encourage new companies to list on the NSE; we want to make sure that MTN, Glo, Airtel and all the companies that are doing very well and making billions of naira in profits should also list on the capital market so that Nigerians can also share from their profits.”

The Minister also disclosed that the successor companies that emerge from the privatization of the power industry will also be compelled to list their shares on the NSE.

He said, “The power sector is also another big business in Nigeria and we are working to ensure that when we are regulating the sector, we want to do it in such a way that one or two people will not come into the sector to form a cartel.

“So, to avoid this, we are also going to make sure that the distribution companies that will operate in that sector will list their shares so that after their privatization, Nigerians will be given the opportunity to buy shares in these power generation and distribution companies.”