Uwaleke: Savings Scheme, Dangote Listing to Deepen Nigerian Capital Market
A stronger phase of expansion awaits Nigeria's capital market, with two developments expected to pull in more participants: the National Savings Scheme that is yet to be launched and the planned listing of Dangote Refinery.
That projection came from Prof. Uche Uwaleke, who leads the Association of Capital Market Academics of Nigeria. He set out his views in a paper marking Nigeria's 66th independence anniversary, titled 'Nigeria at 66: Why the Capital Market Gives Us Cause to Celebrate'.
Uwaleke traced the market's path from small beginnings in 1960 to what he described as a multi-trillion-naira ecosystem, with equities capitalisation now above N163 trillion. In his account, the most promising chapter has not yet been written.
He pointed to work by the Securities and Exchange Commission on a second Capital Market Master Plan, saying it gives the market a chance to lock in earlier reforms while charting a new course.
According to Uwaleke, the fresh blueprint ought to focus on bringing more Nigerians into the market both directly and indirectly, widening the pool of securities available for investment, drawing in additional issuers from home and abroad, improving liquidity, and tightening protections for investors.
"The next blueprint should place particular emphasis on expanding the number of Nigerians who participate directly and indirectly in the market, increasing the supply of investible securities, attracting more domestic and international issuers, deepening liquidity and strengthening investor protection," he stated.
Turning to the National Savings Scheme, which is due to be introduced shortly, Uwaleke said it holds promise for building a stronger culture of saving and investing among Nigerians.
"A country aspiring to industrialize cannot depend indefinitely on foreign capital or public borrowing alone. It must progressively mobilize its own domestic savings and channel them into productive investment," he said.
He argued that if the scheme is properly structured, with protections for investors, easy-to-access products and financial literacy efforts, households could be persuaded to shift away from informal saving arrangements. Such a shift, he said, would steer them towards instruments that build wealth over the long term. Young people, women, workers in the informal sector and Nigerians living far from the main commercial hubs stand to gain in particular.
On Dangote Refinery's planned listing, Uwaleke said the consequences for the market could be considerable.
"It would potentially provide Nigerian investors with an opportunity to participate in the ownership of a major industrial asset, deepen the equity market and demonstrate the capacity of the domestic market to accommodate large-scale enterprises," he said.
He also cited the recent banking recapitalisation drive, during which lenders tapped public offers and rights issues to raise capital, as fresh evidence of what the market can contribute to national development.
Even so, Uwaleke made clear that these openings will only produce durable gains if ordinary Nigerians find the market easier to understand and to reach. That, he said, requires continuous investor education, outreach to universities, and cooperation among regulators, market operators and academics.
"At 66, Nigeria may not yet be the country its founders envisaged, but it remains a country of immense possibilities. The capital market reminds us that nation-building is not measured only by the distance yet to be covered, but also by the institutions already built," he disclosed.
to like, bookmark, and comment.
Comments
Join the conversation:
No comments yet. Be the first to share your thoughts.