The Chartered Institute of Stockbrokers, CIS has explained that entertainment industry requires huge fund for its operations, hence the need for the sector to seek listing on the Nigerian Stock Exchange, NSE.
File photo: The floor of Stock exchange
The President, CIS, Mr. Albert Okumagba said “There is the belief that the entertainment industry has not really benefited from the capital market. The coverage and spread of Nollywood and the Nigerian music industry without any doubt, goes beyond the shores of Nigeria.
The popularity and brand visibility of Nigerian actors and musicians within Africa appear to be unparalleled with any other country’s within the continent. Hence, if it can access the needed capital that can run a life line in its system, the entertainment industry can be a major export earnings source to the nation.”
He emphasized that the capital market has series of financial instruments that are available for the entertainment industry to optimize for both practitioners in their personal capacities and also their companies, stressing that the recently concluded conference of the institute had provided the opportunities for entertainers to engage capital market operators.
According to Okumagba “We are of the view that the industry has the potential to do more than it is contributing to the nation’s Gross Domestic Product (GDP) at the moment if it is well funded.
When asked what were the critical issues raised by the speakers and discussants during the just concluded CIS conference, he said “The most critical issues raised by the discussants and speakers are Lack of regulatory structure in the entertainment industry ; Lack of knowledge on the part of capital market operators ; The entertainment industry is dominated by individuals and not corporate organisations ; Lack of data and poor record keeping by the practitioners in the entertainment industry. ; General misunderstanding of the role of capital market as bank financing was regularly confused with the role of capital market. ; Piracy in entertainment industry.
When asked if the operators in the entertainment industry are qualified to access fund from the capital market, Okumagba said “There are still structural issues to be sorted out secondly the operators need also to be transparent in the dealings.
They need to start to employ professionals in keeping of the financial records. They should incorporate companies for the businesses and start separating their businesses from themselves.
On whether the market is ready to absorb the entertainers against the background of some complaints of the operators’ lack of structure, he said “ Yes, they can be treated on individual basis based on track record and recognition. In fact immediately there is one success story of access to fund through capital market others will follow and the capital market will then dictate the structures they want.
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