NSE’s Oscar Onyema speaks on partnership with LSE

The strategic capital markets partnership between the London Stock Exchange and the Nigerian Stock Exchange aims to strengthen cooperation and promote mutual development between the two exchanges. Oscar Onyema, the Chief Executive Officer of the Nigerian Stock Exchange, recently spoke with CNBC Africa from the London Stock Exchange to provide insights into the progress made under the partnership and the benefits of investing in Nigeria's capital market. Since the partnership agreement was renewed in April of this year, significant strides have been made in expanding the collaboration beyond equities. Initially focused on equities, the partnership has now extended to include opportunities for fixed income and other products. One key success story under the agreement has been the dual listings of securities such as the highly oversubscribed CEPLAT IPO, as well as the sovereign Euro bond and diaspora bond. Onyema highlighted the success of the dual listing conferences, which aim to provide global visibility and access to deep capital pools for investors. The participation in these conferences has been strong, with investors showing excitement and keen interest in the growth prospects of the Nigerian economy. The discussions have centered around the recovery in the Nigerian economy, the influx of foreign portfolio investment, and the potential for private sector players to increase their participation in the capital markets. Investors in London have been particularly interested in the improvements seen in the Nigerian economy and the potential for reducing interest rates through successful capital market initiatives. Onyema pointed out that as the federal government shifts its focus from domestic debt markets to foreign debt markets, there is an opportunity for domestic debt to access capital markets more effectively, leading to a possible decrease in interest rates. Additionally, improving tax collection and payment compliance rates could further contribute to reducing interest rates in the country. The partnership between the London Stock Exchange and the Nigerian Stock Exchange is not only facilitating dual listings and access to capital markets but also fostering a deeper understanding of the investment opportunities in Nigeria for global investors. The collaboration between the two exchanges is expected to drive further growth and development in both markets, creating a mutually beneficial environment for investors and companies seeking to expand their presence in Nigeria's capital market.