The Nigerian Exchange Limited (NGX) has shown resilience ranking first in Exchange-Traded Funds (ETFs) market in West Africa with market capitalisation of ₦8.87 billion ($19.25million).
The Chief Executive Officer, Nigerian Exchange Limited (NGX), Temi Popoola, disclosed this at the recently completed ETFs conference themed “ETFs in the Nigerian Capital Market: Opportunities and Challenges” which held on Wednesday via zoom.
This is even as he assured investors that the market would see a renewal in Exchange Traded Fund listings.
According to him, four new ETFs were in the pipeline.
Also, he noted that the market was still in its nascent state, compared to the South African ETF market with a $7.11billion capitalisation.
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“There has been a dearth of new ETFs listings on the NGX in recent years, however, there are bright spots on the horizon with 4 new ETFs listings in the pipeline.
“It is incumbent to state that current macro-economic challenges resulting in the exit of foreign Investors, impacted the ETFs space which resulted in a sharp dip in the ETFs market Cap from 2020 highs of ₦24.5billion.
“We are hopeful that the policy tilt of the new administration would impact positively on our market,” eh told the online participants.
Also at the event was the Executive Commissioner, Operations, Securities and Exchanges Commission (SEC), Dayo Obisan.
He also touched on the challenges in the market but expressed confidence in the ability of experts to proffer solutions.
He urged all stakeholders including the Fund Managers Association, NGX, and other institutional investors to extend the message of ETFs in order to deepen the market and make the asset class more vibrant, thereby driving growth in the capital market.
Also, the Executive Director, Central Securities and Clearing System (CSCS) Plc Adeyinka Shonekan, gave insight into the CSCS’s developmental efforts in the ETFs market.
He says the CSCS is using technology to improve the onboarding of retail investors into ETFs.
According to him, “CSCS has been driving the initiative to reduce the settlement cycle from T+3 to T+2 or T+1 and we have been engaging stakeholders to make sure we make this a reality”.
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On her part, the Manager, Business Development and Exchange Traded Products at the Johannesburg Stock Exchange, (JSE) Adele Hattingh, gave an overview of the South African ETFs market, including why investors should consider investing in the asset class.
Also, the Managing Director, Vetiva Fund Managers Limited, Oyelade Eigbe, spoke on how retail investors could access the ETFs market in Nigeria and monitor their investments.
The event also featured a panel session where capital market experts further addressed the opportunities and challenges of the market, with liquidity as a central topic of discussion.
