Capital Market Attracts N1trn of N360trn into Nigerian Economy in 2022

By Aduragbemi Omiyale

The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, has disclosed that the capital market only attracted N1 trillion of the N360 trillion that moved within the Nigerian economy in 2022.

He said this disclosure at a closing gong ceremony held in honour of the CEO of StoneX Group for Europe, the Middle East and Africa (EMEA), Mr Philip Smith, in Lagos recently.

He said to improve this, the stock exchange was ready to collaborate with the federal government, particularly the incoming administration, to develop the right policies that would promote and attract listings in the capital 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 indigenisation 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,” he said.

Highlighting the importance of retail participation in the Nigerian capital market, Mr Popoola noted that the bourse was keen on growing Nigeria’s retail participation and boosting investors’ confidence in the market, pointing out that the exchange will continue to seek ways of supporting the new administration.

Also speaking, Mr 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.

He added that plans were underway to deepen retail participation in the Nigerian capital market, saying, “In the last three 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, the Chairman of StoneX Nigeria, Mr 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,” Mr Fowora said.