Nigeria’s Equities Benchmark Index Peak Amidst Global Economic Shocks.

The Nigerian stock market, has reached a positive milestone with the All-Share Index reaching an all-time high, crossing the 70,000-point mark.

This formed part of the remarks made by the Director General of the Securities and Exchange Commission, (SEC), Lamido Yuguda at the third Capital Market Committee (CMC) meeting for 2023, saying that this reflected a more than 30 percent increase this year.

Yuguda, who is also the Chairman of the CMC, expressed optimism about unlocking the full potential of the capital market, aligning it with the Renewed Hope Agenda of the President, Bola Tinubu.

The SEC DG while briefing the committee, highlighted key economic indicators, including Nigeria’s headline inflation rate, GDP growth rate, and market performance as having impacted greatly on the nation’s economy.

Addressing the challenges posed by high-interest rates on government treasury securities, the Chairman stressed the need for strategic measures to attract more investments into the capital market.

He also noted concerns around the recent reclassifications of Nigerian securities indices by FTSE-Russell and MSCI, attributing these to the present foreign exchange liquidity challenges, and its effects on investor confidence.

Yuguda also provided a brief assessment of the global economy, acknowledging its resilience amid challenges such as the pandemic, ongoing geopolitical tensions, and economic uncertainties around the world.

He then highlighted the disparity in economic performance across countries and regions, lower global growth projections, and the impact of interest rate hikes on economic activity.

Present at the CMC meeting are key stakeholders, including the Chairman of the Senate Committee on Capital Market, Senator Osita B. Izunaso; Deputy Chairman of the Senate Committee on Capital Market, Senator Peter N. Jiya; Chairman of the House Committee on Capital Market and Institutions, Honourable Solomon T. Bob, and his deputy, Right Honourable Dr. Muktar  Zakari amongst others.

In his brief address, Right Honourable Solomon T. Bob, expressed the readiness of his committee to contribute towards facilitating the development of an ecosystem that would ensure efficient access to capital formation through consultation, cooperation, and information exchange.

He acknowledged the existence of external economic forces impacting market expansion and highlighted the National Assembly’s role in protecting investors.

Honourable Bob, welcomed enhanced coordination for market innovation and stated his readiness to help strengthen the relationship between the market and the National Assembly.

He also recognized the opportunities offered by the emerging derivatives market and anticipated valuable insights from this and future CMC meetings for legislative frameworks supporting a thriving capital market.

In his address, Distinguished Senator Osita B. Izunaso, underscored the senate committee’s steadfast commitment to fostering a robust market environment.

He outlined legislative initiatives, including the repeal of the Investments and Securities Act (ISA) 2007, which has already passed 1st and 2nd Reading at the House of Representatives and 1st Reading at the Senate, while also pledging to help expedite the process, aiming for submission to the President for assent by Q1 2024

Senator Izunaso commended the government’s interest in the capital market, signified by the appointment of key figures from the market to influential positions.

He then urged the Commission to enhance public awareness of the capital market’s benefits, expressing optimism that the envisioned one trillion-dollar economy could be realized, with the help of collaborative efforts and productive actions in the capital market.

The Director General of the Securities & Exchange Commission, (SEC), Lamido Yuguda then acknowledged the presence of the distinguished senators and honourable members of the House of Representatives, saying it was a testament to their unwavering commitment to the advancement and prosperity of the Nigerian capital market.

Olusola Akintonde