As we close the year 2018, we note a rather
remarkable 12 months of creating liquidity and supporting transparency in the
Nigerian capital market.
The year commenced, with a release of pent up trading activity that had built
up during the 15-month recession period. First depressurization in
quarter one of 2018 alone resulted in trade activity that exceeded total trade
activity of 2017 (in volume and value)!
Retail investors regained an interest in OTC stocks while institutional
investors confirmed their confidence in NASD market structure by executing long
term acquisitions in some of the better managed securities. The
entry of Allianz Plc into the Nigerian Insurance landscape and various private
equity firms into the Financial sector were significant stand out events.
A fully indigenous firm - Agemate limited refined and released two versions of
the Bilateral Interdealer Trading System [BiTs] during the year. The
flexibility of BiTs enabled us to provide the OTC community
with a more representative Value Weighted Pricing methodology – further
encouraging investor interest and price discovery.
The Apex regulator also provided full support of the market and approved our
scheme to launch a trade guarantee fund which will ensure that no investor will
lose from a failed trade on the NASD OTC.
2018 also witnessed our introduction of the capital market to the growth
enterprise industry through NASD Enterprise Portal (www.nasdep.com ). We
remain convinced that the bulk of Nigeria’s economic activity will come from
this segment. We acknowledge the several financial advisers and
private equity firms that have already enlisted to play in this critical
To allow for easier information access and market transparency, we were able to
revamp our website – www.nasdng.com and
include a unique data portal which provides observer access to daily market
As 2018 closes, NASD PLC appreciates all contributors to the remarkable growth
of the OTC market. We look forward to an exciting 2019 and wish you
an even more memorable, prosperous and fulfilled 2019.