NSE, FG to Dialogue on Floating Public Enterprises on Stock Exchange

The Nigerian Stock Exchange, NSE has said that it will put more into its efforts to dialogue with the Federal Government to bring public enterprises on the stock exchange so that the full potential of such institutions can be fully unlocked and Nigerians could benefit from it.

Chief Executive Officer of the NSE, Mr. Oscar Onyema, made this known while reacting to questions from the media during its briefing on the performance of the market in 2015 and outlook for the year said.

He said the recent pronunciation by the Minister of State for Petroleum, Mr. Ibe Kachukwu, that NNPC is looking at raising Initial Public Offer (IPO) is encouraging.

Onyema disclosed that the stock market lost about $30 billion in market capitalisation from 2014 to date due to the fall in oil price. He said the downturn from 2015, has already continued into the new year.

He affirmed the ability of the capital market to finance the federal government’s proposed budget deficit for 2016. Speaking at the NSE 2015 Market Recap and Outlook for 2016 yesterday in Lagos, Onyema said with greater clarity on policy direction, the exchange anticipates the return of investors who had remained on the sidelines throughout 2015.

He stated that the return of investors is predicated upon return of their (investors) confidence as a result of effective implementation and communication of the government’s economic blueprint; credibility in monetary policy stance; relative stability in the macro economy (oil price stability above benchmark targets), increase in tax collection to GDP ratio and improved security, among others.