Chamber Urges NASS To Discard Private Companies’ Conversion Bill

The Lagos Chamber of
Commerce and Industry (LCCI) has called on the National Assembly to discard the Private Companies Conversion and Listing Bill, 2013.
LCCI in a statement signed by its Director-General, Mr Muda Yusuf and made available to journalists stated that it rejected the bill in its entirety because it would serve as a disincentive to entrepreneurship and foreign investment pointing out that the bill signified a drastic shift in Nigeria’s policy on foreign direct investment.
“A lot of companies have come into Nigeria in the belief that Nigeria operates a free enterprise system and guarantees them the right to own and repatriate their hard earned funds.
“The bill, destroys this concept of free enterprise in Nigeria and has the undesirable consequence of discouraging foreign investment in Nigeria”, it said.
The bill which is being sponsored by Chris Azubogu, vice chairman, House of Representatives Committee on Capital Market seeks among other things the conversion to public liability companies, private companies which shareholders funds exceed N40 billion or annual turnover exceeds N80 billion or whose  total assets are above N80 billion.
It also seeks to ensure that shares of such companies be listed on the Nigerian Stock Exchange.
The LCCI said that the listing requirements of the bill were ill-timed in view of the falling oil prices and the need for the government to generate more revenue from taxes.
“The tax reliefs proposed by the bill to companies that comply with its mandatory conversion and listing requirements are not desirous at this critical moment, especially in view of the fact that companies that would benefit from the relief constitute about 32 per cent of deligent tax payers”, said LCCI.