Reps Move to Broaden Coverage of Capital Market in Nigeria   

The House of Representatives has passed a bill for a second reading that will broaden Nigeria’s capital market by allowing greater participation from entities that have previously been excluded.

The bill sponsored by Benjamin Kalu (APC, Abia) passed the second reading at the plenary on Wednesday and seeks to establish the Chartered Institute of Cooperatives and Social Enterprise Management.

Presenting his lead debate, Kalu says, it also seeks to empower cooperatives and social enterprises by broadening the coverage base of Nigeria’s capital market.

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According to him, it will achieve the objective through joint investments, in an all-inclusive participation that whittles down systemic shocks that are common with less diversified structures within the stock market.

Additionally, he says it will empower cooperatives and social enterprises with greater access to and use of financial market instruments for long-term investments, specifically through dilution of capital costs for lower financial costs of operations.