DMO, National Assembly rally support for Nigeria’s first exchange association
The collaboration is expected to promote cost savings measures, and make the market more attractive to local and foreign investors.
The Nigerian Stock Exchange (NSE), pioneered the formation of the association from five vibrant securities exchanges in Nigeria.
Membership of the association currently includes, AFEX Commodities Exchange (AFEX); FMDQ OTC Securities Exchange (FMDQ); NASD OTC Securities Exchange (NASD); Nigeria Commodity Exchange (NCX); and NSE.
The Director-General, Debt Management Office, (DMO), Ms Patience Oniha, at the official launch of the Association of Securities Exchange of Nigeria (ASEN) at the NSE, in Lagos, yesterday, urged members to ensure that the emergence of the five exchanges would accelerate economic growth, and attract more private sector patronage in the market.
According to her, government has decided to reduce the level of activities in the domestic market in the last seven months, to boost activities in other segments of the market and grow the local bourse.
She restated government’s support for the big entity, which is expected to accelerate the development of domestic securities exchanges, and support the Nigerian capital market to achieve greater global competitiveness.
“The DMO decided that the institution must be represented in person because we believed in market. One of the things the Federal Government did when it set up the DMO was to subject itself to the discipline of the market.”
She continued: “If you check our borrowings in the domestic market, we subject it by way of securities; their prices are market determined, they are traded and we are happy the market has advanced.
“We expect the market to support economic growth, it would not be a market where we do only buying and selling, but to promote economic growth that is essentially the focus of this government. We need to support the private sector to promote the growth of the economy.”
The Chairman, House of Representatives Committee on Capital Markets and Institutions, Yusuf Tajudeen, pledged support for the association in the areas of enacting laws and amendments.
“We commend the effort of the NSE on this laudable initiative, aimed at making the capital market globally competitive. The power of unity cannot be overemphasized. We will be available where the laws require any tinkering and things that will strengthen the association.”
The Chairman, ASEN Board of Trustees and Chief Executive Officer of NSE, Oscar Onyema, said the association will help build a stronger capital market, and cultivate a culture of mutual support among stakeholders.
According to him, as global securities exchanges respond to developments in the operating environment, there is a need for Nigerian securities exchanges to embrace a broader collaborative effort to unlock new opportunities.