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FG Must Create Enabling Environment For IPOs – NSE CEO

By on January 26, 2013

The CEO of the Nigerian Stock Exchange, Oscar Onyema, has stated that the market capitalizastion of the Nigerian market will increase if government creates an enabling environment for initial public offerings to return to the exchange.

He said to journalists at a press briefing earlier in the week that the market recovery will be sustainable if efforts are made to deepen the market.

He said, “We cannot say that our market is completely back until initial public offers and new listings are back in the market; therefore, we need active government support in terms of providing the environment for companies to list their shares on the Exchange.

“Presently, our market capitalisation is only 17 per cent of the country’s Gross Domestic Product, and this is one of the lowest in Africa. We need the utility companies, oil companies and telecoms companies to list their shares, and we believe that government has a great role to play in this regard.”

Speaking on the goal of achieving $1 trillion market capitalization by 2016, he said it was still possible if the oil and gas majors listed their stocks on the exchange.

“Our goal is to grow our market capitalisation from $74bn to $1tn in five years. If we can attract the oil and gas sector, if we can attract the telecoms and power sectors, then we should be able to hit those numbers.”