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Nigerians clamour for Legislation to match the Economy with the Capital Market


November 25, 2011

After a pause in which investors picked themselves up and dusted off from the roundhouse punch delivered by the financial crisis and stock market collapse in 2008 and early 2009, initial public offerings have disappeared from the market.

The lack of interest in IPOs at this time in Global Markets can be traced to several factors, namely: stock market adversely affected by downgrade of US debt rating; more friendly foreign markets, particularly in Europe and Asia; Economic uncertainty in European countries such as Greece, Portugal, Spain and Italy; growing number of venture-backed companies subjected to mergers and acquisitions; preponderance of other ways to raise capital in the secondary market.

The reasons for this outlook or trend cannot be farfetched, particularly in Nigeria market where things seem to be more baffling, as the issue goes beyond financial crisis as a cause. Follow this link for full insight .

Nevertheless, in view of finding the solutions to this unpleasant outlook of the primary market in Nigeria, the shareholders/investors of quoted companies through the Regulator polls on our website expressed their views on the mind-boggling dialogue and impression that listing of Telecom firms, Oil & Gas, Energy and Agriculture sectors will ignite activities in the IPO market with or without compelling legislature. See the findings below

The poll conducted over on week duration revealed how the stakeholders in the Nigerian capital market believed the legislations that will propel/compel the listings of these companies from such sectors on the bourse.

The findings revealed a clearer perspective, showing:

  • *That 92% of the participants in the one-week poll were of the opinion and agreed that we need the right legislation to compel the sector player

  • *While the 8% believed that market will recover on its own, saying no legislation required.

  • *And 0% voted for Agreed, we do not need legislation but a nudge and the market needs more regulation to make it attractive.   


Conclusively, the poll resutls revealed the minds of the Nigerians (majorly the shareholders of quoted companies and invetors in the country), which we have presented above in clear, concise and undistorted manner.

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