Capital Markets

Following two years of rapid, double-digit gains in its equity market and strong foreign investor appetite in fixed income, Nigeria’s capital markets entered 2014 with the wind at their back, thanks in part to the announcement of a favourable reweighting of the MSCI Frontier Index in 2013. As the portfolio of investable instruments continues to grow with the launch of new platforms, Nigerian authorities are seeking to further deepen Africa’s third-largest financial markets. Indeed, new products, along with more liquidity, will be needed if the Nigerian Stock Exchange is to reach its goal of a $1trn capitalisation by 2016. The Nigeria stock market is poised for stronger growth throughout 2015. The peaceful conclusion to the March 2015 elections should help rebuild investor confidence, both in the stock market and the wider economy, although depressed oil prices continue to be a reason for caution. Ongoing structural reforms are set to foster better capitalised players that will drive the expansion of penetration locally and further attract global frontier market funds.

This chapter contains interviews with Oscar N Onyema, CEO, The Nigerian Stock Exchange (NSE), and Wale Agbeyangi, Managing Director, Cordros Capital.