‘Investor patronage crucial to sustainable economic development’
The Nigerian Stock Exchange (NSE), Nigerian International Securities Limited (NISL), and the Chartered Institute of Stockbrokers (CIS), have said investor participation is pivotal to sustainable development of any economy.
Representatives of the three groups stated this at a webinar organised by the NSE in collaboration with the NISL, and supported by the CIS, and the Association of Securities Dealing Houses of Nigeria (ASHON).
Specifically, the Chief Executive Officer, NSE, Oscar Onyema, in his address, explained that investor participation was crucial to sustainable economic growth.
He expressed the Exchange’s commitment towards expanding retail investment opportunities in the capital market, and to playing its role in advancing the Federal Government’s financial inclusion goals.
“NSE is committed to playing a critical role in the advancement of the FG’s financial inclusion goals.
“As part of our efforts to realise the objectives of the financial inclusion, we intend to facilitate conversations which will serve to equip existing and potential investors with the necessary skill to effectively manage and grow financial resources at their disposal.
“In these engagements, we will also expand the retail investment opportunities available in the capital market and the channels through which they can be accessed.”
Onyema applauded operators and investors in the market for their resilience with the COVID-19 pandemic.
“The outbreak of COVID-19 adversely affected the global economy in many ways and at different magnitudes. The Nigerian capital market was also negatively affected, with the market witnessing a downturn in Q1 of this year.
“However, the market rebounded in Q2, and as a result, the NSE all share index has recorded an 18.9 per cent increase from its position at the end of March. The market also witnessed the growth in the percentage value of equity transactions contributed by retail investors, currently at 29 per cent from 21.8 per cent in 2018 and 24.72 per cent in 2019,” he said.
According to him, they highlighted the market’s resilience in time of adversity, and testified to the stakeholders’ ability to adapt.
Onyema noted that digital technology played significant role in achieving the positive results recorded in the NSE so far, adding that technology has helped to make significant services more easily accessible.
The Managing Director/Chief Executive Officer, NISL, Laolu Martins, said it is imperative to ensure that retail investors were made aware of the opportunities inherent in the capital market, noting that navigating through the web of processes in the market is usually difficult, thereby discouraging them from investing.
He said: “The general belief is that retail investors are often left behind and do not have enough knowledge on the workings of the capital market. It is interesting to note that the NSE has over the years taken time and work to ensure that retail investors are carried along and are aware of the various opportunities inherent in the NSE.
“NISL is a securities trading company, financial advisory service, offering consulting solutions to corporate bodies across the value of activities on the Stock Exchange. In order to invest properly, all investors need to carry out some sort of financial planning, no matter how small or big.
“At NISL, we have enough expertise to ensure that we help our investors navigate through this web of terms and processes to ensure that their investment is rewarding,” he said.
President of CIS, Olatunde Amolegbe, commended the NSE, while pledging the Institute’s continued support to drive an inclusive financial system.
According to Amolegbe, the Exchange has always provided avenues that would support and ensure a seamless investing process for retail and other investors in the country and beyond.