Following the persistent market depression, the Nigerian Stock Exchange(NSE) has expressed hope that when the economic and market environment steadies, companies from sectors such as power, upstream oil and gas, telecoms and agriculture would choose the equity route to raising capital, thereby increasing the breadth of the NSE.
The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, stated this in a keynote address to stakeholders from Nigeria’s banking, finance and industrial sectors at the second annual workshop, hosted by J.P. Morgan, Thomson Reuters, the London Stock Exchange(LSE) and the Nigerian Stock Exchange(NSE).
He noted that the Exchange had taken steps to restore local as well as foreign investor confidence in the market and also has introduced new products.
Onyema said:“The Nigerian capital market is undergoing a metamorphosis. While change is an inevitable effect of growth, we must collaborate to do it proactively and strategically in order to become the gateway to African markets.”
The first workshop was in November last year, which explored ways to increase foreign investment in Nigeria. This year’s workshop focused on strengthening and widening Nigeria’s still relatively nascent equity and debt capital markets.
The event which was attended by more than 150 delegates was opened by the Lord Mayor of the City of London Rt. Hon. Alderman Michael Bear, the UK’s financial ambassador.
He highlighted London’s position as the world’s leading centre for international capital and the role it can play in both assisting the development of Nigeria’s financial sector and working jointly to finance Nigeria’s infrastructure development.
The Director General of the Securities & Exchanges Commission (SEC) Ms. Arunma Oteh, who outlined recent steps to strengthen the equity market, said she has been encouraged by the fact that both corporate as well as government and local bodies have been able to tap the country’s bond markets.
Oteh lauded the completion of the bank restructuring exercise, saying that Nigeria’s largest services sector has been de-risked to a great extent and has been instrumental in improving investor sentiment on Nigeria.
The London Stock Exchange’s Head of Primary Markets for Africa, Mr. Ibukun Adebayo, noted that if the government’s reforms agenda makes headway, utilities and upstream energy companies will begin to tap funding from the capital market.
“Energy and electricity sector reform will go a long way in ensuring that Nigeria becomes the African economic powerhouse of the future. As the world’s largest centre of international equity capital and as the natural home of energy, infrastructure & resources companies, the London Stock Exchange is best placed among all global exchanges to finance Nigerian companies in these sectors.” he said