Out of  a population of over 170 million Nigerians, only  five million currently participate in the Nigerian capital market. The Securities and Exchange Commission (SEC) is working towards increasing this figure to 10 million Nigerians by 2024.

Speaking at the centenary Capital Market Committee (CMC) meeting in Lagos, yesterday, the sponsor of the  Literacy Committee, who is also  the Executive  Commissioner, Legal and Enforcement, SEC, Mrs Sa’adatu Bello, said efforts are being made to ensure that more Nigerians invest in the market.

“Our committee is trying to find out why this is so and one of the reasons is  lack of knowledge. So the committee is to come up with ways of informing, at least, 40 million Nigerians and getting 25 per cent of that 40 million to participate in the capital market. That is our mandate,” she said.

Efforts are being made to ensure  that the market capitalisation of the Nigerian Stock  Exchange (NSE) is about 130 per cent  of the country’s gross domestic product (GDP) by 2024 says Mr Mounir Gwarzo, Executive Commissioner, Operations.

Currently the capitalisation is about 27 per cent of Nigeria’s GDP compared to the capitalisation of Malaysian market  is 270 per cent  of  that country’s  GDP, while that of Brazil is 130 per cent, noting that the 130 per cent target in Nigeria is achievable.

“In the next 10 years the Nigerian capital market will be ranked among the top 20 in the world. It is achievable. We are looking at  the market capitalisation contributing about 130 per cent over our country’s GDP. Malaysia is  270  per cent  and  that of India 170 per cent,” he said.

To achieve this target, Gwaro said the Committee will be  addressing issues that have to do with regulations and  how to make regulations more effective, new products and  reducing cost of transactions among others.

Meanwhile, trading at the stock market remained positive yesterday as the NSE All-Share Index appreciated by another 0.34 per cent to close at 37,820.22.

2014-03-28