‘NSE’s dual listing scheme with LSE to boost capital formation, liquidity’

The Nigerian Stock Exchange (NSE) has announced that its dual listing between NSE and London Stock Exchange (LSE) would facilitate seamless cross-border access for the nation’s bourse, to ultimately drive deeper markets that enable capital formation for businesses, through creation of larger liquidity pools and greater competitiveness for Nigerian investors.

This synergy, according to the Chief Executive Officer of the NSE, Oscar Onyema, would enhance capacity and promote diversity of investment products to meet the needs of a wide range of investors and issuers.

Addressing participants during the second NSE/LSE conference held in Lagos yesterday, Onyema explained that as government grapples with the task of articulating a clear economic blue print for the short to midterm within which credible fiscal and monetary policies can emerge,  the need to leverage and embrace the globalisation of economies and financial markets becomes clearer.

“One of the things that Nigeria (and Africa) needs to sustain its growth, is a solid and vibrant capital market ecosystem that will attract investment and unlock the potential that exists in the economy,”he said.

According to him, in order to position the nation’s  capital market as the sustainable financial center in West Africa, and for Africa, there was need to facilitate the drive for wealth creation for Nigeria, while providing the platform to which global savings can be channeled. “We must use this opportunity to partner with each other, to enable us further unlock our growth potential, and advance the development of our financial and capital markets.”

He urged all stakeholders to create synergies that would unlock the growth potential and advance the development of the nation’s capital markets.

According to him, the first quarter of 2016 has been a wild ride for most economies and markets because asset prices collapsed during the period.

Onyema said that capital markets were critical to sustainability of growth and development in any economy.

He explained that Nigeria needed to sustain its growth through a vibrant capital market ecosystem that would attract investment and unlock the potential that exists in the economy.

Onyema added that capital markets increase the proportion of long-term savings that would be channeled to long-term investments.

He added that Nigeria remained top of mind on the African continent for investors in spite of the intricacies facing the economy and markets.

The Chief Executive Officer and Director of International Development, LSE Plc, Nikhil Rathi explained that London market attracts issuers all over the world that wants to access capital within the world.

“We have analysts that understands Africa and wants to invest in Africa market and that make a difference. Investors can be able to access capital quickly. We witness the highest capital raising last year.”

He explained that dual listing enables the market to target different ranges of investors, adding that it would also fast track the country’s SME’s growth.