Economy
Proposed Fragmentation of Stock Market Tears Operators Apart
By Dipo Olowookere
Capital market operators in Nigeria have expressed divergent views on the plan by the Securities and Exchange Commission (SEC) to fragment the stock market, Vanguard is reporting.
The SEC had disclosed plan to fragment the stock exchange further to cater for small and medium enterprises (SMEs) in the country interested in listing but are encumbered by the stringent listing requirement of the Nigerian Stock Exchange (NSE) as part of efforts to drive equity listing in the stock market.
According to SEC, the process, when completed, would lessen the strident listing rules that have been hindering small companies from listing in the stock market.
However, operators who spoke to Financial Vanguard said that creation of multiple exchanges is not enough to propel listing, while others argue that it is the right step in the right direction.
According to Mr Johnson Chukwu, Managing Director/CEO, Cowry Asset Management Limited, creating multiple exchanges would have little impact on the quest to get more companies to list.
He noted that what is of utmost importance is for companies to have incentives for listing. He opined that though it is good to have multiple exchanges, create different listing requirements for those exchanges and have lower standard of listing requirements, but ultimately, “shareholders are looking for liquidity for their stocks; they are looking for appropriate pricing of their stocks and access to long term funds. Those conditions must be in place to make for the buoyancy of those exchanges”
Appropriate pricing of their shares
“We have had two tier market for a long time. We had a second tier market and we now have the ASeM that took over the second tier market and we have seen the performance of the AseM.
“The basic thing is not for companies to list, there must be incentive for listing and those incentives should include liquidity in their shares, appropriate pricing of their shares and ability to obtain longer term funds by virtue of being listed.
“These conditions must be in place for companies to signify to list irrespective of the number of exchanges you have.
“Unfortunately, because of the current economic condition, stock prices are not reflective of the intrinsic worth of the companies and shareholders do not have any compelling need to list their companies.
“So, until those conditions are in place when the stock market will reflect the intrinsic worth of the companies, stocks should be appropriately priced, the market will increase liquidity for those stocks, then listing will give companies opportunity to raise long term funds from the primary market, then multiple stock exchanges may not materially affect the number of companies that will list,” Mr Chukwu argued.
In his own view, Mr Austin Okoye, Member, Channel Sales, Cordros Capital Limited, said the plan is not bad in itself, but the implementation stage might pose a challenge.
He observed that the SEC may not be toeing an unusual line, saying that it is the practice in other climes.
According to him, the creation of multiple exchanges as proposed by SEC would likely create competition among the exchanges leading to more efficiency and effectiveness.
He further stated that it would engender more seriousness in corporate governance of the exchanges.
“Multiple stock exchanges will create an element of liquidity and transparency because whether the exchanges know it or not, they are competing in some ways and companies will have to look at which exchange that provide the best opportunity for them before deciding whether to list on NSE or any of the new ones that will be created.
“In the end, it will be good but a lot will depend on the management of all the exchanges,” Mr Okoye said.
He added that competition will also drive down cost and create opportunity for companies that are not eligible today to be listed on the NSE to access those exchanges.
By Adedapo Adesanya
The International Monetary Fund (IMF) has removed Nigeria from its Total IMF Credit Outstanding list after repaying the $3.4 billion pandemic loan.
The global lender provided funding support to some countries after the COVID-19 pandemic in 2020, which crumbled the global economic and made some nations struggling to survive.
Nigeria was among the countries that relied on the IMF for funding support and it has repaid the loan, prompting the lender to remove its name from the debtors’ list.
The journey towards clearing this debt began in earnest in 2023, when the nation’s IMF debt stood at $1.61 billion, reaching $472 million by January 2025.
Commenting on the development, the Senior Special Assistant to the President on Digital Engagement and Strategy, Mr O’tega Ogra, described the clearance as a “strategic reset” for the nation’s financial policy.
He emphasized that this achievement is a reflection of the administration’s focus on fiscal discipline, long-term sustainability, and economic resilience.
“This milestone signals a new chapter for Nigeria, one marked by clarity, capacity, and fiscal responsibility.
“We are no longer defined by aid dependence but by our capacity to stand tall and manage our financial future on our terms,” Mr Ogra stated.
While Nigeria’s exit from the IMF’s debtor list is a symbolic moment of progress, Mr Ogra made it clear that the country would continue to engage with the IMF and other international partners, but now on a more proactive, strategic basis.
“Global partnerships remain essential, but we approach them from a place of strength, not dependency,” he added.
By Adedapo Adesanya
Nigeria has called for deeper collaboration with Norway in the areas of debt restructuring, tax transparency, and climate finance, as part of its broader strategy to unlock sustainable development opportunities through global partnerships.
According to a statement, this call was made by the Minister of State for Finance, Mrs Doris Uzoka-Anite, during a high-level bilateral meeting with the Norwegian Deputy Minister of International Development, Ms Stine Renate Håheim, held on the sidelines of the recent 2025 United Nations Meetings in New York.
Mrs Uzoka-Anite emphasized that Nigeria is prioritizing partnerships that can accelerate its economic reform agenda and climate resilience goals.
“We are actively seeking partners who understand the urgency of our development needs, especially in areas such as climate finance, debt restructuring, and tax cooperation,” she said.
She spoke on Nigeria’s interest in NORAD’s Energy for Development platform, which supports sustainable energy solutions across developing economies.
The Minister noted that Nigeria is eager to tap into the initiative to fast-track energy access and reduce emissions.
“Our energy transition plan aligns with global climate goals, and we believe collaboration under NORAD’s platform will be instrumental in delivering clean, affordable energy to millions of Nigerians,” she added.
The meeting also spotlighted the need for greater transparency in international tax cooperation frameworks.
“Improving tax transparency is critical to domestic resource mobilization. We welcome Norway’s support in helping us strengthen systems that fight illicit financial flows,” Mrs Uzoka-Anite stressed.
Ms Håheim acknowledged Nigeria’s regional importance and expressed readiness to explore areas of mutual interest, particularly in promoting inclusive growth and green development.
The statement added that the bilateral engagement reflects Nigeria’s diplomatic outreach at the 2025 UN Meetings, reinforcing its drive to forge strategic alliances that enhance governance, unlock financing for development, and boost resilience in the face of current global economic challenges.
By Modupe Gbadeyanka
Stakeholders have projected that the maritime law book authored by Mrs Mfon Ekong Usoro will drive judicial and economic reforms in Nigeria.
At the presentation of the book titled International Trade and Carriage of Goods by Sea: Text, Cases, and Materials in Lagos on Tuesday, the piece was described as a timely intervention to strengthen the country’s judicial processes and economic development, particularly in the area of international trade.
The book, which integrates both local and international legal standards, aims to serve as a reference point for legal professionals, regulators, financial institutions and participants in the trade and shipping industries.
The Chief Justice of Nigeria (CJN), Mrs Kudirat Kekere-Ekun, who wrote the forward, said the publication would serve as a foundational text that would enhance the judiciary’s capacity to resolve disputes related to trade and shipping efficiently.
She said the book presents a practical approach to interpreting legal issues around carriage contracts, cargo liabilities and dispute resolution under both local and international frameworks.
“By simplifying complex concepts through case studies, diagrams and statutory references, the book will strengthen the quality of judicial decisions and enhance legal education in this essential sector.
“This text is exactly what our legal system needs. It commands respect for local precedents while drawing on legal judgments from other jurisdictions, guiding our courts to a uniform approach and giving our practitioners the confidence to negotiate, mitigate and arbitrate across borders,” she said.
On his part, the president of the Dangote Group, Mr Aliko Dangote, described the book as essential for businesses operating in global trade.
“This is the kind of resource that improves certainty in commercial transactions and boosts confidence among business operators,” he stated, praising the author’s contribution to trade and legal practice in Nigeria.
The book reviewer, Mr Adedolapo Akinrele (SAN), described the text as a unique, structured resource, citing over 200 cases, extensive chapters and global conventions to illustrate key concepts in maritime and international trade law.
He emphasised its practicality and relevance to both seasoned professionals and new entrants in the legal and commercial sectors.
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