Nigeria: Stock market grows by 70.7 percent in last nine years

The market capitalization of the Nigerian equities market has grown by 70.7 percent or N5.594 trillion from N7.91 trillion to N13.51 trillion in the last nine years under Oscar Onyema as the Chief Executive Officer (CEO) of the Nigerian Stock Exchange (NSE) amidst challenging economic terrain, according to a report by This Day.

Onyema assumed office as CEO of the exchange in 2011 following the exit of Prof. Ndi Okereke-Onyiuke in 2010. The management of the exchange led by Onyema had come in with lots of enthusiasm and prospects to upgrade the local equity market through the introduction of market makers; achieve USD 1 trillion market capitalization by 2016, and bring in a framework to allow Small and Medium Enterprises (SMEs) to gain access to the stock market.

But, in a special report titled: 'NSE 10 years after a takeover: The good, the bad and undecided,' Proshare, research, data, news, and analysis services firm, said the stock market has had a difficult period since Onyema took over the running of NSE.

However, despite the difficult period, the market capitalization of equities, which is the value of equities listed on the exchange rose from N7.91 trillion at the beginning of 2011 to N13.51 trillion at the end of 2019.

NSE All-Share Index (ASI) grew by a marginal 8.4 percent in the same period, rising from 24,770.52 to 26,842.07.

In the nine years, the market recorded a decline in six years and appreciated in only three years.

It declined in 2011, gained in 2012 and 2013, but fell in 2014, 2015, and 2016. It recovered in 2017 only to decline again in 2018 and 2019. And so far the market has recorded a year-to-date decline of 4.7 percent.