By Alex Ekemenah
Lagos, Nigeria – The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, OON, has revealed that only 3 per cent of Nigeria’s adult population currently participates in the Nigerian capital market.
He made this disclosure at the retail bond workshop held at the Nigerian Stock Exchange, Lagos.
The workshop was held in conjunction with the Debt Management Office (DMO) and Stanbic IBTC Stockbrokers.
He said the partnership with the DMO towards creating investment opportunities for retail investors in the Debt Market dates to the launch of the NSE Retail Bond Market in 2012; when the DMO appointed a Government Stockbroker to provide liquidity in FGN bonds on our bourse.
“With the launch of the NSE Retail Bond Market, the Exchange sought to promote financial inclusion, while stimulating retail investor participation in the Nigerian Debt market. Prior to that time, investing in listed debt instruments had been dominated by institutional investors trading in wholesale denominations”, he said.
Onyema disclosed that from the beginnings of listing and trading Federal Republic of Nigeria (FGN) Development Stocks in 1961, the Exchange has revolutionized into a multi-asset hub with a N12.47tn debt market providing investors access to a wide range of investment opportunities in the domestic and international capital market through the listing of sovereign, sub-national, corporates and supranational debt issues.
“In March 2017, the Exchange in collaboration with the DMO launched the FGN Savings Bond having recognised the opportunity presented by the Nigerian demographic to diversify Government’s funding sources as well as enhance national savings culture.
“Since its debut issuance of NGN2.067bn, retail investors from across the six (6) geo-political zones and the diaspora have invested in the FGN Savings Bond with the DMO raising over ₦13bn from 2-year and 3-year bond maturities as at July 2019.
“Despite these teeming efforts, only about 3% of Nigeria’s adult population currently participate in the Nigerian capital market; an indication that there is need for increased collaborative efforts in promoting higher levels of financial inclusion in Nigeria. In achieving our strategic vision to become the preferred Exchange hub in Africa, we will continue to pursue initiatives that seeks to increase domestic participation in capital market through increased access to investment solutions, as well as support government to achieve inclusive growth and sustainable development
The workshop is aimed at “promoting awareness on investing in Federal Government of Nigeria (FGN) securities with discussions on investment opportunities in FGN Bonds, trading of FGN securities on the NSE as well as addressing the issues around the purchase of FGN securities, payments of coupons, complaint resolution with a view to increasing retail participation in FGN securities and Debt Capital Market as a whole”.
The Exchange promises to continue its collaboration with the Government and market stakeholders to collectively enhance market depth and domestic participation in the Nigerian capital market.