Nigeria Capital Market
The Nigerian Capital Market is the long term end of the Nigeria financial system just as the money market is its short term end. The Capital Market performs for the economy, at the long term end, the functions which the money market performs at the short term end.
The reasons for the establishment of Nigerian Capital Market are similar to the reasons for the establishment of the Nigerian Money Market. The reasons are:
(a) to provide local opportunities for borrowing and lending for long term purposes;
(b) to enable the authorities to mobilise long term capital for the economic development of the country,
(c) to provide facilities for quotation and ready marketability of shares and stocks; and opportunities and facilities to raise fresh capital and mutually acceptable environment for participation and co-operation of indigenous and expatriate capital in the joint effort
(e) To introduce a code of conduct, check abuses and regulate the develop the Nigerian economy to the much advantage of both parties in the market activities of the operators in the market and;
(f) finally through participation and ownership, to provide a healthy
The Composition of the Nigerian Capital Market
The Nigerian Capital Market is comprised the following institutions,
(a) The Nigeria Stock Exchange.
(b) The Nigerian Industrial Development Bank (NIDB).
(c) The Nigerian Bank for Commerce and Industry (NBCI).
(d) The Nigerian Agricultural Bank Limited (NAB).
(e) The Federal Mortgage Bank.
(f) The Securities and Exchange Commission.
(g) The Nigerian Insurance Market.
The Nigerian Stock Exchange
The Nigerian Stock Exchange first started in Lagos in 1960 as a non- profit making organisation. The Lagos State Exchange Act of 1961 legalised it and transformed it to the Nigerian Stock Exchange with
branches in Lagos, Kaduna and Portharcourt in 1977.
The growth of the NSE can be noted from the existence of 19 securities
worth N80 million in 1969 with three dealing members to 186 securities
with market capitalisation of over N7 billion with 23 stock brokers as dealing members. The capitalisation was made up of 57 government stocks valued at $3.2 billion, one State bond of N20 million and 95 equities of N3.0 million.
The indigenisation decree of 1977 played a significant role in the development of the NSE as many foreigners were forced to surrender part or all of their holding in various companies in Nigeria. The Decree resulted in 106 companies seeking public issues through the NSE. Out of these 106 companies, 59 were primary issues.
Also, the Insurance Act of 1976 required insurance companies to invest 25% of their portfolios in government securities. The remaining 75% would then be in equities and loan stocks.
@tipu curate
Upvoted 👌 (Mana: 12/20) Passive income with @tipU :)
We would be talking about the stock index in the Nigerian markets the shares of a long term invested capital can have its good benefits from an optimistic point of view, if it is a long term capital and the rewards are good it would be positive, which cannot be suitable for all the investors since we would have to have working short and long term the investments so that it gives us a good result and to be able to achieve the raised Greetings friend for so important information provided
Wow. Thanks for your valuable Comments
My friend was trying to check through the Nigerian stock exchange and it was certainly nothing to write home about, it didn't look like a place where funds were safe at all but I will certainly share your post with him, it might just help.
Though Nigeria stock might not be that convincing to try out but nevertheless it should br worth trying out.
Thanks for stopping by
@mandate first of all very nice article. Sooner or later they will introduce cryptocurrency also as per my thinking this will help in economy give some booster and help the general public.
Yes. We are hoping to see that soon been achieved