How NSE’s N16.4trn debt market can benefit investors

The Nigerian Stock Exchange (NSE), the Debt Management Office (DMO) and market analysts have listed some benefits for investors in fixed-income market.

In line with its commitment to further enhance the capacity of capital market players across available asset classes, the NSE hosted a two-day webinar on fixed income at the weekend.

The webinar, which was held in partnership with the Debt Management Office and CSL Stockbrokers, focused on the dealing member firms and members of the investing public.

Speaking at the webinar, Oscar Onyema, the chief executive officer, NSE said, “The Exchange continues to be the foremost platform creating new types of debt instruments in Nigeria with a market capitalization of about N16.4 trillion.

“By offering capital raising opportunities and secondary trading to all classes of issuers including sovereign, subnational, corporates and supra-national bonds, the Exchange facilitates the interaction between borrowers and lenders in Nigeria driving efficient allocation of capital.

“With fixed income markets representing one of the largest subset of global financial markets, NSE reiterates its commitment committed to providing a hybrid market for dealers as well as institutional and retail investors to continue to access increased liquidity in fixed income securities.”

Onyema added, “The Exchange continues to deliver on its mandate to not only provide the Nigerian economy with a reliable, multi-asset hub, but to facilitate financial literacy programs that help investors gain an in-depth understanding of opportunities in various asset classes.

“Through frequent communications across its touchpoints and engagements such as this webinar, the Exchange is working assiduously to ensure that investors understand the characteristics of various securities and how they are issued or traded to maximize their benefits.”

On her part, Patience Oniha, the director-general, DMO, expressed her delight to partner with NSE on the webinar.

She said, “While we have always had the money market and the capital market, the fixed income market has also grown to become active today with capital raising from government, corporates and multilaterals.

“This shows that our market is capable of attracting both domestic and international players for the overall good of the economy. In meeting our objectives at financing the budget and deepening capital market activity, we remain committed to using the fixed income platform to support various aspects of the economy.

“We will also remain responsive to investors’ needs for portfolio diversification by expanding our fixed income market with more sophisticated debt instruments.”

The webinar also featured a presentation from Olakayode Olayemi, an equity analyst at CSL Stockbrokers, who took participants through the fundamentals of fixed income trading.

He highlighted both the primary and secondary market activities, as well as the investment opportunities and benefits available for investors in the NSE debt market.