NCC may force telcos to list on NSE
In order to realize the target of $1tn capitalisation by the Nigerian Stock Exchange by 2016, the Nigerian Communications Commission may require the major telecommunications companies in the country to list on the course before their licences will be renewed.
Our correspondent gathered from sources on Wednesday that part of the requirements for licence renewal for the telecoms firms would be their listing on the NSE.
Despite the transformation that the Exchange has gone through in recent years, its bid to get multinational oil companies and telecoms firms operating in the country to list on the Exchange has not yielded positive results.
A reliable source at the NCC, who craved anonymity said, “The telcos may be required this time to list on the NSE; it will likely be one of the licence requirements. Although the telcos have always kicked against this, but it will definitely happen one day and the time is now.”
When contacted, the spokesperson of the NCC, Mr. Tony Ojobo, refused to comment on the issue. He, however, said in a text message sent to our correspondent, “Let’s wait till then.”
The Head, Communications Department, NSE, Mrs. Nwando Ajene, confirmed that the telecoms firms might be coming to the Exchange soon.
“We have a series of initiatives we are working on to make companies, especially the telecoms firms to come to the NSE,” she said.
Another source in the NSE told our correspondent, “The Exchange has done much towards realising the $1tn market capitalisation but there are lots yet to be done before we will get there, particularly in the area of getting more companies quoted on the Exchange.
“The moment you can get the companies listed, it will add to the capitalisation of the NSE.”
The Chief Executive Officer, Fatrax Securities Company, Dr. Wale Ositelu, blamed the Federal Government for the refusal of the firms to list their shares, saying, “When these telecoms firms were about commencing operations in Nigeria, the government ought to have mandated them to list on the NSE.
“The Federal Government should have put the necessary modalities in place for their operation in the Nigerian market. This would have been a good avenue to get them listed in the market. Moreover, the government should have probably after three or four years of their successful operation made this known to them as part of the conditions for their operation in the country because they are big companies and they will add value.
“However, the government should begin to look at legislation that will insist that such companies, if they must operate in Nigeria, must be quoted.”
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