Capital Markets
From The Report: Nigeria 2023
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Nigeria’s capital markets have demonstrated positive growth despite the downturn in regional capital markets and global headwinds. Indeed, at the close of 2022 the rebranded Nigerian Exchange (NGX) had a 19.9% return on investment, making it the world’s fourth-best performing index. Key to sustaining this momentum in the coming years is attracting blue-chip companies to list on the NGX and easing access to capital markets by expanding retail channels. Despite turbulence in the bond and sukuk (Islamic bond) market, Nigeria continues to attract foreign and domestic interest, and new rules, tighter regulations, digitalisation and paperless transactions are likely to further enhance its attractiveness. The country’s capital markets already offer a wide range of products, and further innovations are expected to broaden and deepen the market.
This chapter contains an interview with Tapas Das, Managing Director and CEO, NG Clearing.

Articles from this Chapter

Overview

Balanced approach: Market expected to widen and deepen due in part to tighter regulations and further innovations on the horizon
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While recent years have seen many more established capital markets in the red, Nigeria’s capital markets have shown positive growth. At the close of 2022 the Nigerian Exchange (NGX) had a 19.9% return on investment, earning it the fourth best-performing index in the world, according to the MSCI-All Country World Index which tracks the performance of some 3000 stocks in 48 developed and emerging market countries. This success has come despite a battery of international headwinds, starting with the…

Interview

Market dynamics: Tapas Das, Managing Director and CEO, NG Clearing, on the benefits of central counterparties (CCPs) to the derivatives market, and the need for continuous education and training
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Interview:Tapas Das What is your assessment of capital markets amid the launch of exchange-traded derivatives (ETDs) on the Nigerian Exchange? TAPAS DAS: Nigeria’s capital markets were primarily client identification-based, whereby trades were executed on the client level. In contrast, the omnibus model used by Western counterparts permits managed trades of more than one person by a broker and allows for anonymity of the individuals in the account. All trades had to be settled in the Nigerian…

Analysis

Hard assets: Growing infrastructure funds offer an increasingly reliable way to finance major projects
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One of the main benefits of a successful capital market is its ability to provide financing for important projects. Nigeria’s capital markets are no exception and are now regarded by a government keen to press ahead with a major programme of infrastructure development. According to Zainab Ahmed, the minister of finance, the country needs around $2.3trn over the next 21 years to become a fully modernised and industrialised country. This figure is cited in the National Development Plan 2021-25, which…