The Chief Executive Officer of Nairametrics, Mr Ugodre Obi-Chukwu, has proposed that companies implementing infrastructure projects, such as Lagos-Calabar Coastal Highway, must be listed in the Nigerian Exchange Ltd. (NGX).
Obi-Chukwu made the suggestion at a seminar organised by the Finance Correspondents Association of Nigeria (FICAN) on Tuesday in Lagos.
The News Agency of Nigeria (NAN) reports that the forum had the theme, “Outlook for the Nigerian Economy in 2025″.
According to Obi-Chukwu, listing of the companies on NGX will boost capital formation for critical infrastructure development and promote wider wealth distribution among Nigerians.
He said,” For a lot of the projects going on in Nigeria now, such as the Lagos-Calabar Coastal Highway and other government infrastructure projects, the companies executing those projects for the government should be made to list on the Nigerian Exchange Ltd., because when they list, capital flows across the country.”
Obi-Chukwu also said that such listing would allow the public to invest in the projects and open a new avenue for funding their development.
He said it would also enhance transparency and accountability in project execution.
He said,” Then a lot of these investments can be better accounted for, and the dividends of some of the investment can also accrue to all Nigerians as well.”
He said that private companies’ undertaking of a large proportion of infrastructure projects without significant public participation could lead to concentration of wealth within a small group.
He added that it would limit the economic benefits for the broader population.
“If the companies are listed, and Nigerians own part of the companies, then we all share in the collective wealth,” he said.
He emphasised that a robust capital market was crucial for economic growth, saying that in some developed economies, capital market’s value exceeded the Gross Domestic Product (GDP).
“Let us remember that our capital market is just valued at N60 trillion; so compared that to our GDP of over 200 trillion, it is still small.
“For most developed economies, their capital market is even larger than their GDPs, and that is because a lot of the companies that actually drive economic growth in those countries are listed.
“That is why you need to have a lot of companies that are drivers of infrastructure growth in Nigeria, all listed.
“Once you do that, you will see a change in how the economy is growing, and you will see how wealth flows around the country,” Obi-Chukwu said. (NAN)
