Shareholders Task Firms To Cut Operational Cost

The Shareholders Association, Ibadan Zone, has urged companies in Nigeria to be decisive and cut operational costs to catalyze the business environment in the face of economic challenges. 

Mr Eric Akinduro, the Chairman of the Association, gave the advice in an interview with the News Agency of Nigeria in Ibadan on Tuesday while speaking on the performance of the Nigerian Stock Exchange (NSE) in recent time. 

He said “Presently, I think the whole economy is somehow challenging, but what we are looking at as investors is the final returns being declared by each company, which eventually would determine their dividends declaration. 

“When we look at it, the events on the floor of the stock market; the activities are relatively okay, but the returns to the shareholders are very, very small. 

Akinduro however tasked companies on cutting costs to ensure a robust bottom line that would make for good dividends for the investors. 

“We need to take  decisive decision to challenge the environment.Enough is enough of flamboyant life, enough of increment in Directors’ fees, enough of increment in administration and operation fees.