NSE Investment Roadshow in Atlanta , July 2006.

 

The annual Nigeria Stock Exchange (NSE) road show took place last month in Atlanta. The road show is a deliberate attempt to provide information about the investment opportunities and workings of the Nigeria stock market with the ultimate goal of increasing participation from specifically Nigerians in the Diaspora as well as international fund managers and foreign investors.

The show included a delegation from the NSE as well as several Nigerian stock exchange market operators including stock broking firms, issuing houses, portfolio managers, investment advisors and state and regional investment concerns.

The NSE has grown to a total capitalization of about $25b (N3.6trillion) as at June 26, 2006, dominated by banks (First bank, Union bank, Zenith, GTB, UBA, Intercontinental) and industry leaders such as Cadbury, Nestle, Guinness, WAPCO and Nigerian Breweries. The growth potentials in the years ahead are even more promising if the pace of economic reforms and liberalization is sustained.

The road show was kicked off by the current DG, represented by the former DG of the NSE, Apostle Hayford Alile, posited that said that the only way the economic reform gains could be sustained was through the commitment of all Nigerians, especially the numerous citizens in the Diaspora. She said that the road show was to re-inforce the confidence of Nigerians abroad in the nation's economy and provides them with the platform toward maximising the opportunities in the nation's capital market. Other speakers included Henry Laraiyetan of BGL Securities Limited, Onyewuchi Asinobi of the Central Securities Clearing Systems Ltd.. and Aliyu Alkali, MD of the Northern Nigeria Development Company (NNDC).

A lively and question and answer session saw the audience asking penetrating questions of the panelists, Ariyo Olushekun of Capital Assets Manangement, Emeka Madubuike of International Standard Securities Ltd and Onyewuchi Asonobi. A recurring question posed by the audience was how to ensure the safety of their money in the hands of stock brokers who they do not know given the Nigerian environment. The panelists affirmed that risks are mitigated by going through established and registered companies, assuring that companies take their integrity very seriously and that check and balance mechanisms were in place to ensure fraud is minimized. Participants also raised concerns on the propriety or lack of it of having serving members of the NSE run companies which will be listed on the stock exchange.

Farook Oreagba, the NSE's Head of Derivatives Market and one of the organizers of the event, and a recent returnee to Nigeria after many years in the Diaspora was full of optimism about the potential of the NSE both for investors and as an engine of growth for the Nigerian economy, asserting that new and diversified products such as mutual funds, hedge funds will soon be introduced to the market as the market becomes more sophisticated. He also added that the institutionalisation of transparency in the nation's economic climate will increase investor confidence in the stock market and in Nigeria as a whole.

The event which was organized in conjunction with Nigeria Reunion Inc attracted the Georgia Secretary of State, represented by Dr Femi Ajayi and Chief Tunde Adetunji, CEO of Africa World Museum in Atlanta among other Georgia residents.

The one area that requires improvement is identifying and targeting the right audience: the people who have the mindset and resources to invest in Nigeria whether they be Nigerians or foreigners. Nigeria Business Forum is planning to collaborate with NSE for future events to do market research and targeted advertisement to Nigerians who would benefit most from such event.

Beyond the annual roadshow and the impressive rate of return on investment of the nigerian stock market, questions remain about how the stock market together with the financial institutions and government regulatory agencies can help drive the economic engine of Nigeria: efficiently allocating capital to enterprises that need it for real growth and expansion, providing alternative investment vehicles to the local populace and foreign concerns alike and performing robust oversight, arbitration and regulatory functions which gives confidence to investors.

Below are some pictures from the event.

 

 

Farook Oreagba NSE, Onyewuchi Asonobi (Central Securities Clearing Systems Ltd.), Ariyo Olushekun (Capital Assets Manangement) , Emeka Madubuike (International Standard Securities Ltd) during a question and answer session.

A cross-section of guests on the high table.

Femi Ajayi, representing the Secretary of State of Georgia.

Banji Oladeji, NBF VP, Chief Tunde Adetunji, CEO of Atlanta-based Africa World Museum and Dokun Adewole, NBF President.

Dokun Adewole, NBF President and Apostle Hayford Alile, mmediate past DG of the NSE and Chairman, Central Securities Clearing Systems Ltd.