As the December deadline of the one billion naira capitalization stipulated by the Nigerian stock exchange commission draws near, many Nigerian stock broking firms are embarking private placement to source additional funds from specific members of the public. The Nigerian stock exchange has foreclosed listing of any dealing members as a quoted company on the Nigerian exchange.
This is raising chills over and fears that many of the Nigerian stock broking firms might get booted out of business due to their inability to meet up with the given deadline date. Already the Nigerian federal ministry of finance is insisting that there is no going back on the recapitalization and the deadline given. The Director-General of 
the Nigerian Stock Exchange, Prof. Ndi Okereke Onyuike, has criticized the move, saying that it wont be proper for Nigerian broking firms who trade on stocks to get listed and also trade on their shares. She went on to suggest that rather, these firms should raise money from the public and establish corporate establishments using different names that would be forwarded to Nigerian stock exchange for council. She also disclosed her fear on the fate of brokerage firms that deal on small investors, as this will cause their closure since the Nigerian federal ministry of finance has an aim of reducing the about 208 brokerage firms to 100. The Director-General noted that no company will be forced by the Nigerian stock exchange to merge or acquire another company as was the case in the banking sector. But she warned that companies that does not meet the deadline as stipulated by the ministry of finance will have her license revoked.
Wednesday, June 18, 2008
Fate of Nigerian Stock Broking Firms
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