Nigeria: CBN Blamed for Losses in Capital Market

Members of the House of Representatives and stakeholders in the Nigeria's capital market have accused the Central Bank of Nigeria (CBN) of inconsistent policies leading to the continued downward trend in the market.

The lawmakers and the stakeholders, including shareholders said billions of naira is being lost from investments in the country due to slides of share prices in the Nigerian Stock Exchange (NSE) by the CBN and other regulatory agencies.

This was the consensus reached at a public hearing meeting between the House committee on capital market and institutions at the National Assembly to tackle the problem as well as vex issue of unclaimed dividend funds.

Speaker of the House Yakubu Dogara said in the event that the persistent downward trend in the Nigerian Stock Exchange and the issue of unclaimed dividends by investors were two issues presently posing serious national challenges.

Dogara drew the participants' attention to the effect resulted by the persistent downward fall in the price of crude oil in the international market and its impact on the Nigeria stock market.

Chairman of the committee Rep. Tajudeen Yusuf (PDP, Kogi) said the seriousness with which the House took the issues necessitated the passage of two similar resolutions that culminated in the public hearing.

Members of the House of Representatives and stakeholders in the Nigeria's capital market have accused the Central Bank of Nigeria (CBN) of inconsistent policies leading to the continued downward trend in the market.

The lawmakers and the stakeholders, including shareholders said billions of naira is being lost from investments in the country due to slides of share prices in the Nigerian Stock Exchange (NSE) by the CBN and other regulatory agencies.

This was the consensus reached at a public hearing meeting between the House committee on capital market and institutions at the National Assembly to tackle the problem as well as vex issue of unclaimed dividend funds.

Speaker of the House Yakubu Dogara said in the event that the persistent downward trend in the Nigerian Stock Exchange and the issue of unclaimed dividends by investors were two issues presently posing serious national challenges.

Dogara drew the participants' attention to the effect resulted by the persistent downward fall in the price of crude oil in the international market and its impact on the Nigeria stock market.

Chairman of the committee Rep. Tajudeen Yusuf (PDP, Kogi) said the seriousness with which the House took the issues necessitated the passage of two similar resolutions that culminated in the public hearing.

Some stakeholders including Dr. David Ogogo, Amb Olufemi Timothy and Mr Emeka Mmadubike the Presidents of Institute of Capital Market Registrars, Independent Shareholders Association of Nigeria and Association of Registered Stockbrokers in their separate presentations blamed the CBN for the downward trend in the stock market.

They said the federal government, has on its part, failed to inject some funds to bail out the stock market.