Nigerian Capital Market attracts only 3% of adult population says Onyema

Today’s Retail Bond 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.

L – R shows Kenneth Nwafor, Head, Market Operations, The Nigerian Stock Exchange (NSE); Oscar N. Onyema, OON, Chief Executive Officer, NSE; Patience Oniha, Director General, Debt Management Office (DMO) and Afolabi Oladele, Director Portfolio Management, DMO during the 2019 Retail Bond Workshop at the Exchange today.

The Management of the Nigerian Stock Exchange said that 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.

The  Chief Executive of the Exchange, Oscar Onyema stated this during his welcome Remarks, Retail Bond Workshop On August 6, 2019 At The Nigerian Stock Exchange Building, Lagos

Onyema said that the National Council and Management of the Nigerian Stock Exchange (NSE) welcome you all to the Retail Bond Workshop organized in collaboration with Debt Management Office (DMO) and Stanbic IBTC Stockbrokers.

 

“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

 

In the words of Onyema saying “Our appreciation goes to the management of DMO under the leadership of Ms. Patience Oniha for their continued commitment to deepening the Nigerian capital and promoting financial inclusion through several initiatives which we have collaborated over the years.  The Exchange thanks the Government Stockbrokers, StanbicIBTC Stockbrokers for their support in deepening the retail bond market and that the learning from this workshop will help all participants recognize the opportunities in the Debt Capital Market and identify channels through which they can be accessed.

 

“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.”

 

NSE CEO recall that from our humble beginnings of listing and trading Federal Republic of Nigeria (FGN) Development Stocks in 1961, the Exchange is delighted to have 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.

 

He disclosed that our 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, he added.

He pointed out that prior to that time, investing in listed debt instruments had been dominated by institutional investors trading in wholesale denominations.

 

“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.

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