Despite the impact of the pandemic on businesses and incomes, the market capitalization of fixed income securities appreciated to over N17 trillion as at October 2020.
This was revealed by the Divisional Head, Listing Business at the Nigerian Stock Exchange Market, Mr. Olumide Bolumole, in a webinar hosted by the Exchange in collaboration with Oduá Chambers of Commerce and Industry on Wednesday 11 November, 2020.
The webinar, themed “Capital Raising in a pandemic,” elucidated the traditional role of the Nigerian Stock Exchange (NSE) as an enabler of capital flow from areas of surplus to deficit.
This holds good promise for businesses, as access to capital is the prime challenge faced by companies active in various sectors of the economy.
What they are saying
Commenting on the recent development, Mr. Olumide said:
“The Nigerian Stock Exchange as a platform for capital formation has products and services to support capital raising across economic sectors. For instance, despite the impact of COVID 19, the NSE has facilitated needed financing with about ₦1Trillion in capital raised by governments and corporates between January and October across various asset classes.
“With the All Share Index as at the 9th of November appreciating by over 20% since the start of the year and the Fixed Income market capitalisation currently over ₦17Tn, the market has depth to accommodate required capital.”
Commenting on the role of the NSE Growth Board in raising alternative funds, especially for SMEs, the Head of Department, Branch Network, NSE, Mr. Adeyemi Osoba, stated:
“The Growth Board was launched in January 2020 as part of the NSE’s initiatives to elevate the Nigerian Capital market and meet the needs of businesses at every phase of their lifecycle.
“It provides a platform for fast-growing companies to access cost-effective, long-term capital while enjoying relaxed entry criteria, reduced post-listing obligations and a wide range of value- added services.”
Why it matters
The webinar became imperative owing to the remarkable decline in major sources of revenue for key sectors of the economy due to the pandemic.
It revealed various alternative sources of funding available in the Nigerian Capital Market to optimize business growth, and of which the fixed income securities is part of.
What you should know
Some of the keynote speakers in the event include:
Dele Oye, Esq, the National Vice President, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Mr Femi Ademola, Executive Director, Cordros Capital; Mr Azeez Oluwole, Managing Director, Farmkonnect Nigeria; Chief Kola Akoshile, President, Odu’a Chambers of Commerce & Industry and Mr. Owolabi of Capital Asset Ltd; with Dr. Sam Ikoku, Executive Chairman, Blackstone Private Equity Limited serving as moderator.