THE apex regulatory body of the Nigerian Capital market, Securities and Exchange Commission (SEC) has intimated its move to work with the Nigerian Stock Exchange (NSE) to review transaction cost.

The Director-General SEC, Mr Mounir Gwarzo, who served as a discussant at a Break out session (Creating Secondary Market For Investors) of the Annual General Conference of the Nigerian Bar Association made this known.

Reacting to observations made by Mr Colin Coleman, Managing Director of Goldman Sachs South Africa on the high quantum of transaction cost in the Nigerian capital market, Mounir as well as the CEO of the NSE emphasised that steps have been put in place to ensure a reduction of both the explicit and implicit cost of transactions in the Nigerian capital market.In a statement made available to Tribune Online, the DG acknowledged that “both explicit and implicit costs in Nigeria are higher than in peer countries,” noting within a short period of time the market would feel the effect of these reductions.

He noted that to start with, there would be a haircut on SEC, NSE, Issuing Houses and Receiving Agents fees at the primary issuance side. The four cost centres charge about 70 to 80 per cent of floatation cost, adding that the commission would be addressing the secondary market as well.

The DG also urged legal practitioners to refrain from instituting unnecessary litigation at the instance of their clients who are involved in an enforcement action of the Commission.

Making this plea, he added that this would ensure the support of the Legal profession to the Commission, thereby allowing the Commission to perform its statutory function and adequately protect investors with the aim to continuously develop the Nigerian capital market and the economy in general.

To relate his plea to the audience, he drew their attention to a quote of Ngwuta JSC in JOSHUA CHIBI DARIYE vs. FEDERAL REPUBLIC OF NIGERIA (2015) LPELR- 24398 where the learned Justice of Supreme Court stated that although lawyers owe a duty to their client, they however owe a higher duty to a higher cause; which is the cause of justice.

He also encouraged law firms to merge into large firms that would possess the capacity to be listed on the floor of a Securities Exchange.

This submission was re-echoed by Mr Oscar Onyeama, The CEO of the Nigerian Stock Exchange (NSE). On a lighter note the Director General solicited legal practitioners to invest in the Nigerian capital market.