Nigerian Stock Market - Review of Recent Changes

The Nigerian stock market was not very popularwas introduced which now make it possible for
among Nigerians in the locust years of military rule.investors to be informed through their cell phone
Those were the years when only few wealthywhat transaction was done in their account. That
people monopolised the benefits of the stockimproved transparency in the operation of the N.S.E.
exchange and used it to their advantage and thoseand its sister organisation-The Central Security And
of their family members. Majority of Nigerians wereClearing System.
left in the dark.The problems of issuance of certificates after public
That perception would change after the advent ofoffers had been a recurring stigma for the N.S.E. as
democracy. The government then took a radical stepregistrars of companies found it difficult to meed set
in the telecommunication sector which had adeadline on issuance of certificates. To solve this
permanent effect on the restructuring of the stockproblem, the e-certificate, e-dividend and e-bonus
exchange operations.policy was introduced to enable investors enjoy
The D.G. of the stock exchange-Professor Ndidimaximum benefit from their investment. Nigerians and
Okereke with the approval of the then Presidentforeigners can now easily transact investment online
Olusegun Obasanjo purchased and installed I.C.T.and be duly informed of the status of their accounts.
facilities to improve the operations of the exchange.Although the e-dividend and e-bonus has been having
The first noticeable result was the live trading ona less problematic implementation, the e-certificate
computers and the crediting of investors' accounthas not had such a smooth ride. Investors want an
withing four days of transaction. That change wasextension in its implementation beyond the initial
revolutionary.deadline of December 2008. The Board of the
The success encouraged stock broking firms to buyNigerian Stock exchange seems to have agreed with
into the I.C.T. revolution which saw many of theminvestors. Investors still have more time to
adopting online services to improve their transactions.dematerialized their certificates before the outright
By the time the banking industry consolidation wasban of paper certificate.
conzumated in 2006, the popularity of the NigerianOne of the lessons learnt from the bearish melt
stock market and the inherent advantage in wealthdown of 2008 is the need for market makers. After
creation and empowerment was on the upswingseveral consultations, the exchange now have 5
among Nigerians. Nigerians at home and abroad joinedmarket makers to further deepen standard practice
the investors train on the exchange to share in theon the stock exchange.
wealth creation rave.No doubt, the Nigerian stock market has positively
The total capitalization which was less than 1 trillionimpacted on the Nigerian economy. The banks and
naira in 1999 jumped to about 15 trillion naira beforeconglomerates are declaring fantastic results despite
the bearish season set in early 2008. The bearishthe bearish season. Dividends are being declared and
melt down and the global financial crisis had sincebonus issue being given.
driven the capitalization of the Nigerian stock marketWhat the changes mentioned above will continue to
to about 7 trillion naira as at January 2009.impact on the Nigerian stock market will be fully
After the banking consolidation, it became obviousrealized in the coming days. Nevertheless, investors
that investors needed more information abouthas applauded the improved transparency and still
transactions on their account. The trade alert servicewish for more.