NSE deepens debt market to N12. 5trn

Motolani Oseni

The Nigerian Stock Exchange (NSE) Chief Executive Officer, Oscar Onyema, on Tuesday, revealed that from a humble beginning as far back as 1961, the Exchange has deepened its debt market to N12.47 trillion.

He, also, disclosed that Nigeria’s Debt Management Office (DMO) has raised N13 billion from the Exchange as at July 2019.

Onyema gave these disclosures during his welcome address at the retail bond workshop organized in collaboration with DMO and Stanbic IBTC Stockbrokers, Tuesday.

According to Onyema, the Exchange is delighted to have revolutionized into a multi-asset hub with a N12.47 trillion debt market providing investors access to a wide range of investment opportunities in the domestic and international capital market through the listing of the sovereign, sub-national, corporates and supranational debt issues.

He said the NSE’s partnership with the DMO towards creating investment opportunities for retail investors in the debt market date to the launch of the NSE Retail Bond Market in 2012; when the DMO appointed a government stockbroker to provide liquidity in FGN bonds on our bourse.

With the launch of the NSE retail bond market, the Exchange sought to promote financial inclusion, while stimulating retail investor participation in the Nigerian Debt market.

Prior to that time, investing in listed debt instruments had been dominated by institutional investors trading in wholesale denominations.

However, in March 2017, the Exchange in collaboration with the DMO launched the FGN Savings Bond having recognised the opportunity presented by the Nigerian demographic to diversify Government’s funding sources as well as enhance national savings culture.

Since its debut issuance of N2.067billion, retail investors from across the 6 geo-political zones and the diaspora have invested in the FGN Savings Bond with the DMO raising over N13billion from 2-year and 3-year bond maturities as at July 2019.

Despite these teeming efforts, only about 3 per cent of Nigeria’s adult population (according to data from the Central Securities Clearing System CSCS), participate in the Nigerian capital market, the NSE boss lamented.

He thus called for increased collaborative efforts in promoting higher levels of financial inclusion in Nigeria.

“In achieving our strategic vision to become the preferred Exchange hub in Africa, we will continue to pursue initiatives that seek to increase domestic participation in the capital market through increased access to investment solutions, as well as support the government to achieve inclusive growth and sustainable development”, Onyema said.

The winner, who came with a retinue of his kinsmen, business associates and his family members said he could not express his happiness for the “big win.”