FG rakes in N716.8bn from bonds in 8 months – SEC

The Securities and Exchange Commission (SEC) on Friday said the
Federal Government realised N716. 8 billion from bonds issued
between January and October.

Dr Afolabi Olowookere, SEC Divisional Head, Research and Policy
Management, Office of the Chief Economist, made the disclosure at
2018 SEC Journalist Academy in Uyo with the theme: The capital
market masterplan: The journey so far.

Olowookere said the figure was lower compared with N1.55
trillion FGN Bonds issued in 2017 due to government’s decision to
float an Euro bond to finance the 2018 budget.

He said the corporate bonds segment improved to N150.6 billion
higher than N23.2 billion recorded for the whole of 2017.

Olowookere stated that equities issued during the period under
review amounted to N135. 3 billion against N306.5 billion in 2017
due to downturn being experienced in the market ahead of 2019
general elections.

Speaking on the topic: Capital market performance (2016 -2018):
Things to look out for in reporting performance, he said securities
worth N132.32 trillion were traded on the FMDQ securities exchange
between January and September.

Olowookere said foreigners accounted for about 50 per cent of
transactions on the stock market.

He stated that domestic institutional investors comprising
pension funds, insurance, among other accounted for about 30 per
cent, while domestic retail investors accounted for about 20 per
cent.

Olowookere stressed the need for developing domestic retail
investor base to boost the depth and liquidity of the market.

“We need to encourage domestic investors to do more in our
market. We need to develop local capacity.

“We need to have companies that are representative of our
economy listed on the Nigerian Stock Exchange,” Olowookere
said.

He noted that in the last five years, foreign investment
outflows had been more than inflows, except for 2017, same year the
market returned 42 per cent.

Olowookere said foreign outflows between January and September
stood at N513. 5 billion against foreign inflows of N477. 7
billion.

He added that foreign inflows in 2017 stood at N772. 3 billion
compared with foreign inflows of N435. 2 billion in the same period
under review.

Olowookere said investors should be made to understand that
investment in the stock market was long-term by nature, noting that
the equity market would rise in the long run.

Also speaking, Dr Hassan Suleiman, SEC’s Principal Manager,
Strategy Division, said the commission was committed to the full
implementation of the masterplan to enhance the growth and
development of the market.

Suleiman said the masterplan was aimed at developing a highly
competitive market in terms of size.

He said Nigeria needed a capital market that would speed up its
economic development. (NAN)

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