Benefits of ETFs

The Nigerian Stock Exchange (NSE) has been making strides in broadening and deepening the capital market through Exchange Traded Funds (ETFs). These investment vehicles have been gaining popularity globally, offering investors a diversified and transparent way to invest in various asset classes. In a recent interview with CNBC Africa, Harinajalu Waziri, Executive Director at the NSE, shed light on the benefits of ETFs and the opportunities they present for investors in Nigeria. Waziri highlighted the growing interest in ETFs and the various options available to investors in the Nigerian market. With eight ETFs currently listed and more in the pipeline, the NSE is focused on educating investors and intermediaries to drive liquidity in the market. One of the key challenges facing ETFs is liquidity, and the NSE is actively working to address this through workshops and seminars aimed at increasing awareness and understanding of these investment products. Waziri also touched on the topic of listings on the NSE, expressing confidence that more companies will go public in the near future. As Nigeria grapples with economic challenges, Waziri emphasized the importance of privatization as a way to drive efficiency and create opportunities for the public to participate in business ownership. The NSE is in discussions with companies that have been privatized to explore the possibility of returning them to the public market. Overall, ETFs and listings on the NSE offer investors a pathway to investment success and play a crucial role in driving growth and development in the Nigerian capital market.