By Barnabas Esiet
The signing of the Finance Bill into law represents a landmark achievement for the Nigerian capital market.
Chief Executive Officer of the Nigerian Stock Exchange, NSE, Oscar Onyema, said this at a forum organised in Lagos in collaboration with KPMG Nigeria to acquaint Stakeholders with the implications of Nigeria’s Finance Bill 2019 passed into law by the National Assembly in October 2019.
The finance act which became effective on February 1st, 2020, has the objectives to promote fiscal equity, align domestic laws with global best practices, support MSMEs, increase government revenues and promote activities in the capital market.
Onyema noted that since 2014, the NSE alongside Securities and Exchange Commission (SEC) as well as other capital market stakeholders have 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.
NSE CEO, Oscar Onyema.
” The NSE, in its efforts to support the growth of the Nigerian economy and its issuers is, therefore, happy to collaborate with leading tax expert, KPMG to highlight the implications of these new rules and provide guidance on how to effectively navigate the provisions of the bill, especially as it relates to taxes.” He said.
The Partner & Head, Tax, Regulatory and People Services of KPMG, Wole Obayomi, said the Act is a landmark legislation that should be embraced by all stakeholders to ensure it achieves its laudable objectives.
“The removal of multiple tax footprints for securities lending and real estate investment schemes is expected to stimulate activities in those segments of the market, the generous incentives for the small and medium enterprises (SMEs) in the Act coupled with the launching of the Growth Board for capital raising by that sector from the Nigerian Stock Exchange, are timely interventions to drive the growth of the economy through the SMEs.” He said.
Investors, listed and prospective companies, as well as other capital market operators were present at the forum.