Leadership (Abuja)
Justus Nduwugwe
8 July 2008
Abuja — Director General of the Securities and Exchange Commission (SEC),Mr. Musa Al-Faki, has said that the value of trading on the Nigerian Stock Exxhange (NSE) grew remarkably from N225.8billion (U$1.71billion) in 2004 to 2.09trillion ($17.9million in 2007.
The DG made this known yesterday in Abuja at the national conference on financing the seven-point agenda through the Capital Market.
According to him, economic indices show that the real GDP growth averaged 7.3 per cent over the last four years while the IMF's World Economic Outlook predicts a 9 per cent growth for Nigeria in 2008.
"The exchange rate has stabilised while inflation rate remains within single digit. The country now prides itself with a relatively strong banking sector a robust capital market", he stressed.
As one of the organisers, the DG expressed the belief that the capital market will continue to play its role as the engine of growth for the Nigerian economy. "It is in line with this objective that we have put in efforts and resources to support the laudable seven-point agenda of this administration", he added.
He continued, "In 2007, new equities reached N1.34trillion, which was well in excess of the aggregate issues from 1981 to 2006 which stood at N1.04trillion. Value of trading on the NSE also grew remarkably from N225.8billion ($1.771billion) in 2004 to N2.09trillion ($17.91billion) in 2007.
"More remarkable was the growth of market capitalisation from N2.11trillion ($15.96billion) in 2004 to N13.294trillion ($114.3billion) by December, 2007. Market capitalisation as a percentage o GDP also rose significantly from 18.5 per cent to about 50 per cent in 2008.
Meanwhile, the Chairman of the Board of SEC, Senator Udoma Udo Udoma, acknowledged that the capital market has been used to foster the growth and development of the advanced economies. "This is because it is a particularly suitable source of funding for capital intensive projects that have long gestation periods", he stated.
According to Udoma, "It is for this reason, amongst others, that we believe that the capital market has the potential to play a major role in the growth and development of our country, Nigeria."
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