By Chinwendu Obienyi
The Chartered Institute of Stockbrokers (CIS) has revealed that Nigerian banks raised approximately N2 trillion from the primary market in 2024.
Its President, Oluropo Dada, stated this whilst addressing stakeholders during the last trading day at the floor of the Nigerian Exchange Limited (NGX) which held recently.
This reflects the banking sector’s active participation in capital markets to bolster liquidity, support lending, and fund growth initiatives. Primary market activities typically include Initial Public Offerings (IPOs), bond issuances, and other capital-raising instruments.
Whilst in the company of the Institute’s 1st Vice President, Fiona Ahimie, Dada stated that the market surpassed expectation in 2024 despite the headwinds.
He added that the market evolved and grew in leaps in bounds, having surpassed expectations in terms of resilience, reliability and profitability.
“The year-to date returns on the stock market investment in excess of 36%, outperforming inflation rate, possibly the only market that gave positive returns in Nigeria in 2024. The market capitalisation significantly went up as a result of new listings. in the primary market, close to N2 trillion has been raised by banks, confirming strong liquidity and strength,” he said.
The significant fundraising suggests efforts by banks to enhance their balance sheets, comply with regulatory requirements, or fund expansion projects amid Nigeria’s evolving economic landscape.
The Head, Trading and Products, NGX, Abimbola Babalola, in his welcome comments stated that there is general improvement in the market performance across all asset classes in 2024, including equities, fixed income and Exchange -Traded Fund (ETF).
He ascribed this to team work among the market regulators, government and operators and congratulated stockbrokers for their support during the year and noted that more opportunities would spring up in the market in 2025. Also speaking, the Association of Securities Dealing Houses of Nigeria (ASHON) was represented by its second vice chairman, Ify Ejezie, emphasised ASHON’s role in market development.
She noted that ASHON liaises with regulators and government on behalf of securities dealers, focusing on issues that benefit the market’s growth and sustainability.
With inflation projected at 15% and the dominance of local investors, a bullish market is anticipated. Stability in stock prices is also expected, enhancing investor confidence.