Structure of Nigeria Capital Markets

Accessing the Nigerian capital markets:

The Nigerian Capital Market is the most vibrant in Africa after that of South Africa.

The Nigerian Stock Exchange which was founded in 1960. It is 2nd most active exchange in Africa after the Johannesburg Exchange with 197securities listed on the daily official list of the Exchange.

Companies have their Shares listed by the Stock Exchange to be bought and sold daily by the public.

The market Capitalisation (The total value of each store multiplied by the number of the stores of each company taken together) is about N3.7Trillion which at current exchange rates converts to about 29 Billion US Dollars.

The returns (The Profit) in real terms in the Nigerian Capital Markets have been the highest Worldwide for many years running.

The Nigerian capital Market is generous not only in the dividend yields (The % of the cost of the Shares to the dividend paid annually) but also in terms of price appreciation of stocks.

This year alone, the Nigerian Capital market has grown by more than 50%, although most of the growth can be linked to the pressure on the Capital Markets by the new Pension Fund Administrators who are required by the new Pension Reform Act 2004 to invest a good portion of the Pension Funds they manage in the Nigerian Capital Market.