NGX Expresses Optimism On Economy Stability, Raises N4.7 Trillion To FGN Bonds In 2023

The Nigerian Exchange Group (NGX) Plc has expressed optimism of the nation’s economy stability in the years to come saying that the operating subsidiaries  have raised over N4.7 trillion in Federal Government bonds for nation and over N137 billion for the sub nation’s in 2023.

Group Managing Director/ Chief Executive Officer NGX, Mr. Oscar Onyema who disclosed this in his keynote address at the City BusinessNews Summit held in Lagos on Wednesday, reiterated that the economic situation of Nigeria gives rise to the need to explore other options of generating revenue and attracting investors both locally and internationally.

Onyema who was represented by Mr. Tony Idugboe, Group Chief Investment Officer NGX, noted that despite the challenges, Nigeria being an industrious country keeps thriving in the face of adversity to ensure the rebirth of a new economy.

According to him, one of the key areas that could boost the economy as well as create enormous opportunities for investors is the capital market, noting that investing in the capital market gives the nation an advantage to unlock new avenues for economic growth and development.

The GMD stated that capital market is a key driver of economic growth and supports for the overall economic objective of sustainable development.

 

He said ” According to Nigeria Development Update (NDU), the removal of fuel subsidy and reform in FX market by the new administration are crucial to build fiscal space and restore macroeconomics stability,which will lift Nigeria’s growth potential.

“With these steps, Nigeria economy is expected to grow at 3.3% in 2023, 3.7% in 2024 and 4.1% in 2025. The effect of the fuel subsidy removal if not well managed could expose lots of citizens to absolute poverty and lack of social amenities.

“The inflation rate is expected to be higher in 2023 and lower in subsequent years. High inflation and low fiscal revenues continue to hinder economic growth and possible investments.

“Capital market serves as a platform for government and businesses to access funds from a broad range of investors, enabling them to expand. innovate, and create new job opportunities.”

He further re-echoed that  revitalising the Nigerian economy is imperative for the nation’s development adding that a well developed domestic capital market will enable governments and companies to access long term finance in local and foreign currency, increase investments directed toward innovation and promotes sustainable growth with greater employment opportunities for a growing middle class .

“In the coming years ,capital markets will play an even bigger role by facilitating the mobilisation of more private capital into key sectors such as energy, infrastructure, housing , Small Medium Enterprise (SMEs) and sustainable finance.”

“A well structured capital market companies of the primary market serving as a source for new securities and providing the government the opportunity to raise funds for investment, and the secondary market which offers opportunity for maintenance and sale existing traded securities.

“On our exchange platform we have traded N1.4trillion in equities turnover and N3.2 billion in bonds turnover YTD October 19 2023, so we maintain a liquidity secondary market and the issuances done in the primary market”, he added.

On his part , Chairman of the summit, Barrister Hassan Bello lamented the nation’s seàports were not configured to boost exportation.

Bello, a former Executive Secretary, Nigerian Shipper’s Council, maintained that export is the only way to get the need foreign exchange and job creation needed to grow the economy.

He further affirmed that Nigerian products are rich in quality but packaging of such products constitute major setbacks to exportation.

Also speaking at the summit with theme: Reposition Nigerian Economy 2023 and Beyond as special guest, Chairperson, Women in Logistics and Transport (WILAT) Nigeria,

Pharm. Khadija Ifetola Sheidu-Shabi urged Nigerians to embrace exportation to grow the nation’s economy.

Sheidu-Shabi who also doubles as General Manager, Health Safety and Environment, Nigerian Ports Authority (NPA) stated that Nigeria has the potentials to generate the needed foreign exchange through export noting that lack of adequate packaging poses serious threat to shipping Nigerian commodities overseas.

 

By Roland Ekama