Press Release

The Chief Executive Officer (CEO) of The Nigerian Stock Exchange (NSE), Mr Oscar Onyema has said that the nation’s capital market has emerged stronger and more focused from the financial meltdown of 2008, revealing that in the 13 years before the 2008 financial meltdown, the Nigerian equity market recorded over 1,200 per cent return on investment.

The CEO, who said this in his presentation at the Public Hearing organized by the House Committee on Capital Market in Abuja, said that it was unfortunate that the market lost approximately N1.4 trillion in market capitalization in 2011. “As the reforms continue, and with government support, we remain confident that by year’s end, the market will be well on its way to recovering its vibrancy”, he assured.

According to Onyema, “We believe that these losses were driven by:The soft global economy, including the debt crises in the U.S. and European Union – EU accounts for 22 per cent of foreign portfolio investment into Nigeria; the Nigeria banking crisis (including nationalization of three banks in August).

“The lack of investor confidence triggered by losses incurred during the financial meltdown of 2008/2009; the lack of liquidity and depth in the market; concerns about the security situation in the country; and rising interest rates (MPR has been raised in the past three months from 8 per cent to 9.25 per cent, and just this week, to 12 per cent) which is encouraging investors to shift from equity to fixed income investments”.

He promised that the Council and the management team of the Exchange would continue to carry out market reforms to champion the acceleration of Nigeria’s and Africa’s economic development.

According to him, “The new Nigerian Stock Exchange provides a vehicle for long-term ‘saving’ and ‘borrowing’, and hence, efficient use of financial resources. The current market cycle presents an incredible opportunity for investors.

Wole Tokede,

Senior Manager,

Media Relations,
Corporate Communications,
The Nigerian Stock Exchange

 Click to download Memorandum of NSE to the House Committee on Capital Markets