Regardless of some of the enchancment recorded by the Nigerian capital market to date 60 years, the journey to creating the Nigerian capital market “one among many largest, most liquid, most diversified and most delicate rising markets by 2025” as envisioned by the Capital Market Grasp Plan CMMP, seems very far, UcheUwaleke, a professor of Capital Market on the Nasarawa State Faculty, has talked about.
In his contact upon Nigeria at 60: whither the capital market?, he talked about: “The market is still shallow and however to be accurately positioned to assist Nigeria’s monetary priorities. At decrease than 20 per cent of the nation’s Gross House Product, GDP, the scale of the capital market constrains its place in monetary progress. As compared with South Africa with over $1trillion in market capitalization representing over 200 per cent of the nation’s GDP, your entire market capitalization in Nigeria actually pales into insignificance.”
In response to him : “Just some years up to now, the Nigerian Stock Change, NSE had set a aim of $1trillion market capitalization by 2016 nonetheless it not at all materialized. Fastidiously tied to that’s the non-diversified nature of the issuer base with itemizing concentrated in quite a few sectors along with the small number of listed companies (decrease than 200) in a country touted as crucial monetary system in Africa. As a corollary, market liquidity, measured by turnover, stays an issue whatever the appointment of market makers in 2012 anticipated to supply liquidity to securities by the availability of bid and supply prices.