The Director General Securities and Exchange Commission (SEC), Mr. Lamido Yuguda has hinted that the SEC has commenced necessary engagements with relevant stakeholders to ensure that tax waivers exemption in the debt capital market is re-introduced.
Speaking virtually during the first quarter Capital Market Committee, the DG noted that the sunset of tax waiver could potentially distort future capital inflows into the country with the likely pressure on foreign exchange, which is not in the interest of the economy as a whole.
According to him, until recently, transaction fees were non-existent or negligible in the debt capital market, while the cost of regulation was relatively the same as in other instruments and markets, stressing that the fact that tax advantage gave the market some support, allowing it to grow.
He explained further that, “This support was largely financed by fees from other segments of the Capital Market. We believe that the debt capital market has grown tremendously and is mature enough to contribute to the cost of regulating the Nigerian capital market, ensuring it remains safe and fair to all participants.
