Arunma Oteh , Director General of the Securities and Exchange Commission in Nigeria
It is important to lend additional voice and question the rationale behind the Federal Government N22.6 billion bailout of some capital market operators. It is tantamount to rewarding bad behavior and excessive risk-taking at public expense. For the stock broking firms that will benefit from this largesse, if their investments have been profitable and they made a kill in the capital market, they would not have shared their profit with the public. The action of government is, therefore, tantamount to endorsing the privatisation of profits and the socialisation of losses if you have the lobby and the political connection to dump your losses on the Nigerian people. By setting this precedent, the government has further ossified the moral hazard problem in our financial system.
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