NSE releases four-year strategic plan to shore up market liquidity, velocity

The Nigerian Stock Exchange (NSE), on Tuesday, announced its 2018 to 2021 corporate strategy, aimed at boosting retail investor participation presently at seven million to enhance market liquidity and velocity.
Its Chief Executive Officer, Oscar Onyema, unveiled the plan at the 2017 Market Recap and 2018 Outlook presentation in Lagos.
He said that the Exchange’s focus, in the next four years, would be geared towards satisfying customers’ need, boost domestic retail segment penetration and enhance its demutualised structure.
The chief executive, who lamented poor retail participation on the Exchange, said that only seven million investors in a country of 180 million were on the exchange.
He said that the strategic agenda was in line with the changing dynamics in both the operating environment and the global exchange landscape.
Onyema added that the 2018 to 2021 strategic plan was in response to evolving economic conditions and rising domestic competition.
He said that activities in the market were dominated by foreign and local institutional investors with retail investors accounting for only 37 per cent.
Onyema said that the exchange would partner with market stakeholders on new initiatives to boost investors’ literacy about the exchange.
He said that NSE would establish a retail coverage department for the publicity of investment products to support the investing public for financial mobility and wealth creation.
According to him, the Exchange was on track on its effort to becoming a more agile and flexible demutualised securities exchange.
“We are hopeful that the Demutualisation Bill will be signed into law in 2018, and are working assiduously with our advisers to fine-tune outstanding aspects of the demutualisation project.
“The Exchange will launch Exchange Traded Derivative (ETD) instrument in 2018 and engage with the government on privatisation and listing of state-owned enterprises in collaboration with the private sector.
“We also plan to maintain our role as an advocate for the adoption and implementation of market friendly policies,’’ Onyema said.
On Investor Protection Fund (IPF), Onyema said that the Exchange had paid out a sum of N8.2 million to some investors through the initiative.
He said that 92 per cent of the claims approved by IPF board were below the maximum N400,000 maximum payment threshold, noting that investors’ protection was paramount to the NSE.

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