PACKAGING CAPITAL AND DEBT ISSUES SOURCES AND COSTS IN NIGERIA

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Date
1997
Authors
ABDULLAHI, MUHAMMADU SANI
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Abstract
This study was conducted to identify the sources of capital and the cost of packaging those funds in the Nigerian Capital Market. It examined the institutional framework for packaging capital and debt issues, highlighted the role of financial intermediaries and some recent development in the Nigerian Capital Market. To determine the cost of raising funds in the Nigerian Capital Market, data were collected by the administration of questionnaires, in addition, personal interviews were held with The Nigerian Stock Exchange officials, The Securities and Exchange Commission, Chief Executives of Issuing Houses and Stock broking Finns, Accountants, Lawyers. Journals of the Central Bank of Nigeria as well as Seminar and Workshop papers and textbooks written by scholars and renowned authors were consulted. The study revealed that the Nigerian money market is well developed and accessed easily by fund raisers. The cost of funds in the capital market was established to average 10%, while it may cost a company up to 20% to raise funds in the market. This cost was found to be high and discouraged small and medium scale enterprises. It is suggested that as a way of reducing the cost of raising funds in the capital market, the Regulatory authorities should review downwards then registration and listing fees. It is further suggested that more stock broking and issuing houses should be licensed and the stringent condition attached for granting quotation on the Stock Exchange should be reviewed. Issuers of securities should make use of competitive bidding to select intermediaries and market operators.
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A THESIS SUBMITTED TO THE POSTGRADUATE SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTERS DEGREE IN BUSINESS ADMINISTRATION (MBA) DEPARTMENT OF BUSINESS ADMINISTRATION FACULTY OF ADMINISTRATION AHMADU BELLO UNIVERSITY, ZARIA 1997
Keywords
PACKAGING CAPITAL, DEBT ISSUES,, SOURCES,, COSTS,, NIGERIA.
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