‘Foreigners Control 47% of Nigerian Bourse’

Lagos, Nigeria – Foreign investors account for 47 per cent of the Nigeri an capital market capitalisation, the private Businessday newspaper reported Tu esday, quoting the Director-General of the Nigerian Stock Exchange (NSE), Ndi Okereke-Onyuike.

The NSE boss was further quoted as saying local investors control about 53 per cent of the capital market capitalisation.

She said many of the companies listed on the exchange have foreign or multinational affiliations, making it possible for them to “come in and play actively” .

Okereke-Onyiuke said the capital market had remained a place where promoters of projects (companies and governments) could raise long-term funds cheaply, compared with bank borrowing, through the issuance of either bon ds or shares (equity).

“Governments issue bonds to finance variety of developmental projects while companies issue stocks to expand their capital base and inject long term equity in their capital.

Nigeria has a formal market, with a stock exchange in operation since 1961 with government regulatory oversight via the Securities and Exchange Commission (SE C ),” she added.

The NSE boss said the market had grown its market capitalisation from 5.1 trillion naira at the beginning of 2007 to over 10.31 trillion naira (US$86 billion ) currently.

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