The Chief Executive Officer of Nigerian Stock Exchange (NSE), Oscar Onyema has described collaboration with London Stock Exchange (LSE) as deliberate and strategic.
Speaking at the third anniversary of London & Lagos Capital Markets partnership conference, in London on Friday, Onyema said: “Our collaboration with London Stock Exchange is deliberate and strategic. It is geared at encouraging seamless cross-border access between our capital markets to ultimately drive deeper capital markets that enable capital formation for businesses and Governments; create larger liquidity pools and greater competitiveness for our investors; and enhance capacity and promote diversity of investment products to meet the needs of a wide range of investors and issuers.”
Meanwhile, as part of activities to mark the third anniversary of London & Lagos Capital Markets partnership conference, Nigeria’s Minister of Finance, Kemi Adeosun, alongside United Kingdom Minister of State for International Trade, Rt Hon. Greg Hands MP, on Friday opened trading at London Stock Exchange.
The event, hosted in collaboration with the Nigerian Stock Exchange (NSE) was attended by Director General, Nigerian Pension Commission; Chinelo Anohu-Amazu, and Roger Brown, CFO, Seplat Petroleum, among others.
Speaking at the event, Greg said: “I know from my own time in Nigeria that the UK and Nigeria have long enjoyed a close and prosperous business relationship. The UK is one of Nigeria’s largest investors and the Government is committed to boosting trade between our two countries. We are actively helping British companies export to Nigeria and Nigerian businesses to locate and expand in the UK. I welcome this initiative as a further step to deepen the commercial links between our nations.”
Speaking in a similar vein, Chief Executive Officer, London Stock Exchange Plc and Director of International Development, London Stock Exchange Group, Nikhil Rathi said: “Today’s event is a reflection of the global investment community’s strong desire to be a part of the Nigeria story”.
Explaining further, he said: “As the world’s most international exchange, we are ideally positioned to build on the success of existing dual listings in Nigeria and London, boosting global investor awareness of the country’s exciting growth trajectory. Our strong partnership with the NSE allows us a unique opportunity to showcase the rapid developments in Nigerian capital markets and the Nigerian economy.”
A statement issued by London Stock Exchange Group Communications Consultants-India, Middle East & Africa, Mohan Bhuyan, explained that in November 2014, London Stock Exchange Group and NSE signed a capital markets agreement aimed at supporting African companies seeking dual listings in London and Lagos.
He said: “The agreement followed the implementation earlier that year of a new settlement process between the UK and Nigeria. This made significantly more efficient the listing and trading of ordinary shares of Nigerian companies listed in London, as well as those of UK companies on the Nigerian market. Seplat, the oil and gas business, raised $500m in an IPO via this new mechanism in 2014, and was the first company to simultaneously dual list shares in London and Nigeria.
“Nigeria and Africa as a whole represent one of LSEG’s most exciting areas of potential international growth: More African companies, 112, are listed in London than any other international exchange.
· “The companies have a combined market capitalisation in excess of $200 billion; the largest concentration of African quoted companies outside of Johannesburg.
· “A total of $26.1 billion has been raised for African companies in the last 10 years in London with AngloGold Ashanti Ltd, Aviva plc and Tullow Oil plc each raising over $1.5 billion.
· “In addition, more than $5 billion has been raised via corporate and sovereign fixed income issuances in London.
· “There are 8 companies listed on LSEG markets (including GDRs) with their primary area of business in Nigeria with a total market cap of $6.5 billion. 5 of these are dual-listed”.