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Confidence in Nigerian Stock Market attracts UK Government

By BusinessNews Staff on November 20, 2014

The growing confidence in the Nigerian stock market engendered by various reforms in the sub-sector as well as the economy has attracted the attention of the United Kingdom.
This has led to the signing of an agreement to strengthen cooperation and promote mutual development between the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), following which the UK delegation paid a courtesy visit to the NSE President, Mr. AigbojeAig-Imoukhuede in Lagos yesterday.
The move, according to representatives of both Exchanges showed that Nigeria has a lot to offer to the global market beyond crude oil.
The interest is to develop the capital flows between London and Nigeria.
The leader of the UK delegation, who is also the UK Lead Emerging Capital Market Taskforce, Sir Roger Gifford described Nigeria “as the most exciting opportunity for capital markets developments in the world.”
Gifford added: “We in London have seen clearly how an effective, transparent and well governed capital market –for bonds as well as stocks- can transform a country’s fortune for the better, reducing dependence on bank capital and making investment securities available to a much broader range of individuals and institutions.”
He said the visit was an indication of seriousness with which the UK governments takes the Nigerian stock market.
“It is going to be private sector-to-private sector driven,” he added.
Earlier, the NSE president commended the UK government and other stakeholders involved in the process.
According to him, the UK government in its role and as a facilitator of business and trade flows, whether physical goods or financial capital, recognises that it has to stimulate the activities of the private sector and sees great narratives in the development of the capital market.
Aig-Imoukhuede said the desire was to create and foster much closer linkages between participants in the UK capital market and financial system and participants in the Nigerian financial market.
“Nigeria continues to attract significant foreign investor interest even during periods of global market volatility. We welcome initiatives that will further develop investor confidence and complement our bold financial market transformation agenda.
“This process must of necessity recognise the various interest, nuances, players in the Nigerian capital market and we must ensure that we maneuver ourselves such that we achieve the objectives that we have set,” he advised.
Continuing, Gifford pointed out that since the crash in 2008 that affected markets across the globe, there have been moves to ensure capacity development globally.
“There are also huge benefits in the Nigerian market. Here in Nigeria, we think we have identified the opportunity to grow and develop the capital market. The London experience we have in managing our capital market, we think could be vital for Nigeria,” he added.
In a three to five year period, we see a much closer tie between both capital markets. We see assets flowing through the two markets, we see more monies flowing from London into the Nigerian capital market. It requires confidence; it requires clear governance and some legislation.