Article Summary
- The NGX intends to partner with the incoming administration to develop the right policies that will promote and attract listings in the capital market.
- Despite a total of N360 trillion moved within the Nigerian economy in 2022, only N1 trillion made its way into the capital market.
- Plans were underway to deepen retail participation in the Nigerian capital market.
The Nigerian Exchange Limited (NGX) has said that with a total of N360 trillion moved within the Nigerian economy in 2022, only N1 trillion made it into the capital market.
The Chief Executive Officer, Temi Popoola made this known at a Closing Gong Ceremony held in honour of the CEO of StoneX Group for Europe, the Middle East, and Africa (EMEA), Philip Smith in Lagos.
Partnership
Popoola stated that the NGX intends to partner with the incoming administration, to develop the right policies that will promote and attract listings in the capital market.
- “Despite a total of N360 trillion moved within the Nigerian economy in 2022, only N1 trillion made its way into the capital market,” he said.
Enabling policy
Whilst stating that the market can thrive with an enabling policy from the government, Popoola said the exchange is looking to collaborate with the new administration to develop the right policies that will promote listings in the market.
- “The age-old question for the capital market has always been how to get more corporates to list on the Exchange. Federal Government policies have influenced listings in the market. For instance, in the ’70s, as a result of the indigenization policy introduced by the then administration, listings grew from 6 to 81.
- We are looking to collaborate with the new administration to develop the right policies that promote listings in our market with the support of stakeholders like the Chartered Institute of Stockbrokers (CIS), Association of Securities Dealing Houses of Nigeria (ASHON), Association of Issuing Houses of Nigeria (AIHN) and other.”
Retail participation
According to the NGX CEO, the Exchange is keen on growing Nigeria’s retail participation and boosting investors’ confidence in our market. He stated that the Exchange will continue to seek ways of supporting the new administration.
Also speaking at the event, Chief Executive Officer, StoneX Group for Europe, the Middle East, and Africa (EMEA), Philip Smith noted that there is a need for the government to be conscious of the market, by putting up structures that attract listings on the exchange.
Smith also added that plans were underway to deepen retail participation in the Nigerian capital market.
- He said, “In the last 3 years, we have been able to operate new products, especially with our fixed-income product which I consider to be truly global.”
For his part, Chairman, StoneX Nigeria, Femi Fowora, said that as part of its commitment to the Nigerian capital market, StoneX Nigeria is ready to work with NGX in developing structures for retail investors.
- “StoneX has been able to service major Nigerian corporates. We have been committed to this market for a very long time. “We want to see what we can do with regards to retail investors and other areas working with NGX” Fowora said.
He can only speak for the Stock Exchange and not the capital market as a whole. Some transactions were consummated in the private equity and bond market outside of NGX. Also, development banks booked some credits among other transactions that were recorded and long term in nature. I disagree with the title of the write up. What number is he referring to? Is it the secondary market transactions alone or including the listed bond on NGX, NGX is a subset of what is capital market and its historical dominance had been watered down in the last decade