Monday, December 01, 2019 / 07:10AM / Nifemi Taiyese for
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Nigeria's consumer market valued at about $377 billion is one of the fastest growing markets in Africa, which is expected to reach about $454 billion by 2025. 2025.
The CEO of the Nigeria Stock Exchange, NSE, Mr Oscar Onyema, disclosed this at the 2019 CEO interactive session in Lagos which focused on the theme "The Role of the Capital Market in Unlocking Value in the Consumer Goods sector".
According to him the growth in the Nigerian Consumer Market is driven by the following;
Speaking further he noted that the country's estimated population of over 200million, with 72% under the age of 30, presented a huge potential for future investment in consumption activities.
Giving a sectoral overview, Mr Onyema said the manufacturing sector remained a critical segment to the development and advancement of the Nigerian economy.
With a real GDP expansion of 2.28% in Q3 of 2019, which was higher than its performance in the corresponding period of 2018, he noted that the manufacturing sector has contributed significantly to the nation's economic diversification strategy.
Onyema acknowledged that there has been a steady growth in the Nigerian Consumer Goods sector.
For the market the NSE CEO said the consumer goods index has experienced a -29% negative return year to date.
He said the NSE would continue to engage the government on tax incentives that would help improve after-tax earnings of listed companies on the Exchange.
"Nigeria needs a solid and vibrant capital market ecosystem to thrive. The NSE is playing a key role to developing the consumer goods sector in Nigeria" he noted.
The Minister of Industry, Trade and Investment, represented by the Permanent Secretary, Mr. Edet Sunday Akpan, said the consumer goods sector remained a critical segment of the national economy and plays a key role in advancing economic growth.
He described the NSE CEO interactive forum as an opportunity to formulate strategies and initiate collaborative efforts with the Federal Government to optimize the intrinsic potentials in the sector and to proffer solutions to the numerous challenges faced by players in the consumer goods market.
The Minister stressed that nations must be proactive and focused to deliver the right policies and programs, using critical institutions both public and private to boost output by providing the right environment and financing for businesses to thrive.
According to him the consumer goods sector has, nonetheless, experienced various economic turmoil in recent years, as witnessed in areas like foreign exchange challenges between 2014 and 2017.
The Minister believed that the capital market could play a major role as lead financial inter-mediator assuring stakeholders that Nigeria was open for business and committed to protecting investments in the economy.
He also pointed out to captains of industry that the Federal Ministry of Industry, Trade and Investment, through the Nigeria Industrial Revolution Plan (NIRP), is addressing some key challenges in the manufacturing sector, such as limited access to credit and financial services, poor infrastructure and unreliable power supply, which have resulted to reduced competitiveness and profitability.
The event featured topical presentations and panel discussions on critical issues that affect the consumer goods sector in the country.