Despite the impact of COVID 19, the Nigerian Stock Exchange (NSE) has facilitated needed financing with about N1 trillion in capital raised by governments and corporates between January and October across various asset classes.
The NSE made this known at a webinar hosted by the Exchange in collaboration with Odu’a Chambers of Commerce and Industry.
The event disclosed the traditional role of the NSE as an enabler of capital flow from areas of surplus to deficit holds good promise for businesses as access to capital is the prime challenge faced by companies active in various sectors of the economy.
The event themed, ‘Capital Raising in a Pandemic’, was held in furtherance of the Exchange’s commitment to educating business promoters on the alternative funding opportunities available in the capital market to catalyse business growth. This comes on the back of the significant reduction in major sources of revenue for key sectors of the economy occasioned by the COVID-19 pandemic and other macro-economic issues which have negatively impacted business across various industries and highlighted the need for capital raising opportunities.
Speaking at the event, the divisional head, Listings Business, NSE, Mr Olumide Bolumole said, “The NSE as a platform for capital formation has products and services to support capital raising across economic sectors.
“For instance, despite the impact of COVID 19, the NSE has facilitated needed financing with about N1 trillion in capital raised by governments and corporates between January and October across various asset classes. With the All Share Index as at November 9, 2020 appreciating by over 20 per cent since the start of the year and the Fixed Income market capitalisation currently over N17 trillion, the market has depth to accommodate required capital.”
The national vice president, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, expressed the association’s support of the Growth Board and encouraged SMEs to take advantage of the Exchange’s platform to access the right-sized capital required to scale their businesses.