The Nigeria stock exchange was known as the Lagos stock exchange when it was established in 1960 and licensed under the Investment and Security Act. The name was changed from Lagos stock exchange to the popular name which we all know as the Nigeria stock exchange. The Nigerian stock exchange is regulated by a body in Nigeria known as Security and Exchange commission. When talking in terms of market capitalization, the Nigeria stock exchange comes third among the countries in Africa. To buttress this fact, the Nigerian stock exchange as at 31st day of May 2018 can boast of market capitalization of over thirteen trillion Dollars and has 169 listed companies. Some of the Major companies are listed below;
- Dangote sugar refinery
- Dangote Cement
- Dangote Flour mill
- 7up Bottling Company
- Access Bank Plc
- Berger paints Plc
- Consolidated Hallmark Insurance
- Cadbury Nigeria Plc.
- Unilever Nigeria Plc
- Union Bank of Nigeria plc
The Nigeria stock exchange market has indeed witnessed the much expected growth in 2018.The growth of Nigerian stock exchange in 2018 has been attributed to stability in forex and energy supply, reducing cost pressure, increase in consumer demand and favorable external conditions. The stock market in the first quarter of 2018 gained N1.38trn. This was a very huge gain in three months. Some has also attributed the growth in the Nigeria stock market to increase in revenue generated from oil sales.
The Nigerian Stock exchange witnessed up to 12% increase since January 2018. This unprecedented increase has given the Nigerian stock exchange the lead among all other countries of the world. As mention earlier, the increase has been attributed to the increase in the price of oil. This is expected because the economy of Nigeria is almost dependent on oil. Therefore, any increase or decrease in the price of oil will have a far reaching effect on Nigeria’s Economy.
Another major factor that led to the recent growth of the Nigerian stock exchange was the appreciation in share value of the Dangote cement industry. Dangote cement is one of the major stakeholders in the Nigeria stock exchange. One-third of the total market capitalization of Nigeria stock exchanged is owned by Dangote cement. Also, Dangote cement is one of the leading producers of cement in Nigeria, therefore a force to be reckon with as far as Nigeria stock exchange is concerned.
The Growth of the Nigerian stock exchange can also be considered to be triggered by the recent action of the central bank of Nigeria. The central bank of Nigeria created the investor and exporter foreign exchange window. This is a platform that brings investor and exporter together to trade on the foreign exchange market.
Another factor that led to the growth of Nigerian Stock exchange market in 2018 is the fact that it cost very little amount in dollars to invest In Nigeria equity market. This has greatly attracted foreign investors and consequently led to the growth of Nigerian stock exchange. The investors preferred the much developed Nigerian stock Market to other developing ones.