The NASD Plc, which runs the NASD over-the-counter market for unlisted securities, has expressed satisfaction at the level of corporate governance in the OTC market.
The company also said it was pleased with the progress made in the OTC markets since it commenced operations, expressing the hope that investors would get greater returns as more securities get traded on the platform.
In a statement, which was made available to our correspondent on Sunday, it said, “We are delighted with the level of corporate governance and management of companies whose securities are trading on the OTC market.
“Of the 22 companies admitted to trade on the (NASD) OTC market, eight have held Annual General Meetings and six went further to declare dividends. We expect that as more securities are introduced to the OTC market we shall continue to see great performance and increased investor returns.”
Of the companies being traded on the platform that have declared dividends, FrieslandCampina WAMCO Plc has paid the highest dividend, N8.24. Cappa and D’Alberto Plc declared a dividend of N1.2 per share, while Afriland Properties Plc and the Central Securities Clearing Systems Plc paid N0.4 and N0.27, respectively.
The NASD said in the statement that it supported calls by the former Governor of the Central Bank of Nigeria and Emir of Kano, Mallam Muhammad Sanusi, that President Muhammadu Buhari should plug revenue leakages in the country if he must make headway in his anti-corruption crusade.
Sanusi had joined economists and other stakeholders to make the call in Lagos at a symposium on the 2015 Federal Government budget, which was organised by the Institute of Chartered Accountants of Nigeria.
The NASD noted that the symposium observed that projected revenues of over N4tn might not be attainable and all revenue leakages should be blocked immediately.
It said the symposium also noted that there was an immediate need to review the budget in favour of capital expenditure as over 80 per cent allocated to recurrent expenditure was not sustainable for any developing economy.
“To this end, there is an urgent need for the reduction of personnel costs of the civil service and political personnel which is consuming about 70 per cent of the recurrent expenditure,” it said, adding that government was also encouraged to pursue 100 per cent refining capacity for local refineries.
Commenting on the conclusions of the symposium, the NASD said it “identifies with these recommendations, especially the steps which encourage private organisations to actively partake in the development of infrastructure” including power, agriculture, road and rail transportation.
It added, “As a fully licensed OTC Market, NASD has already put in place the necessary structures and processes which will assist in capital formation required to develop various segments of the economy.”
Inaugurated in July, 2013, the NASD is an alternative trading platform created by the National Association of Securities Dealers to bring more liquidity to Nigeria’s capital market.
The platform is also licensed by the Securities and Exchange Commission to trade a broad range of instruments over-the-counter, including bonds and securities not listed on the Nigerian Stock Exchange.
As of Friday, the NASD said it had 22 admitted securities, 170 registered brokers and 103 participating institutions.
Its market capitalisation stood at N527bn with total share capital at N104bn.
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Source : Punch