Mr. Oscar Onyema, NSE DG
By Chinazor Megbolu
The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, at the weekend said that the Exchange has set a target of $1trillion market capitalisation by 2016.
Onyema disclosed this at the 21st Annual General Meeting and Delegates’ Conference of the Financial Market Dealers Association (FMDA) in Lagos.
“If you look at the purchasing power parity, at $1 trillion, the capital market capitalisation will boom. It is not impossible to achieve, though it sounds big, “he said.
He explained that in the last one year, the exchange had recorded remarkable progress as well as improved market excellence.
Onyema, however expressed concern that a lot of firms were not listed on the exchange and urged them to take advantage of the market to expand their businesses.
“There is need for companies to be listed. Not listing is one of the reasons some companies fold up especially when the founder is dead because the family members resort to fighting over who is going to be in charge, “he said.
Continuing, Onyema maintained that at the moment, the NSE had brought a lot of regulations that would ensure that more companies are listed on the Exchange.
“70 per cent of foreign participation doesn’t want to let go because they cannot get better returns elsewhere. But we are sourcing for more local investors to also come list their companies, “Onyema said.
According to him, the passage of the Petroleum Industry Bill (PIB) would create an enabling environment for businesses to thrive. This, he insisted, would ensure that a lot of oil and gas companies are listed on the Nigerian bourse.
The NSE boss who also frowned at the fact that no telecoms firm was listed on the exchange, urged the telecom operators to take advantage of the opportunities in the market.
“We are asking the telecomm firms why they are not listed on the NSE and they have given us a number of issues and we are working on them. We are expecting that next year, a telecomm firm will be listed,” he assured.
On his part, the Chief Executive Officer, B.A. Adedipe & Associates, Mr. Biodun Adedipe, in his presentation, said the intervention by the Asset Management Corporation of Nigeria (AMCON) during the financial crisis, brought business opportunities to a lot of financial services companies.
“We were in a systemic distress and AMCON added value. Bankers were careless because they were never worried about the capacity of those they were borrowing. They were busy looking at their assets and not the capacity,” he said.
According to him, AMCON has been effectively used in ensuring that banks in the country didn’t fail.