NSE seeks stronger collaboration with consumer goods operators
The Nigerian Stock Exchange (NSE), has stressed the need for stronger collaboration with the consumer goods sector operators, to further unlock the Exchange’s growth potential and advance development of the sector in Nigeria. The Chief Executive Officer of the NSE, Oscar Onyema, while addressing operators in the consumer goods sector during an interactive session organised by the Exchange, in Lagos, at the weekend, said creating and sustaining growth in the nation’s market and the economy requires a strong commitment from all stakeholders.
“It is not an easy journey, but it is one we have no choice but to embark upon individually and collectively, in order to develop and guarantee Nigeria and indeed Africa’s competitive advantage in today’s interconnected world.“We must use this opportunity to partner with each other, to enable us further unlock our growth potential and advance the development of the consumer goods sector and capital markets.He expressed optimism that the engagement would strengthen Nigeria’s real sector and reinforce the drive of Federal, states and corporates in accessing the deep pool of fund in the capital market.
“I have no doubt that we will be better positioned to attract rightsized capital required to drive the country’s much needed economic reforms and sustainable growth.“It is my strong belief that one of the things that Nigeria (and indeed Africa) needs to sustain its growth is a solid and vibrant capital market ecosystem that will attract investment and unlock the potential that exists in the economy.”He continued: “There is also considerable opportunity for the consumer goods sector to contribute to Nigeria’s sustainability agenda by tapping into the green and sustainable finance market.
This represents a new stage in development of the Nigerian capital markets and opens the way to expanded international investments. The NSE is playing a key role to help develop this enormous opportunity for Nigeria,” he said.The Minister of Industry, Trade and investment, Niyi Adebayo, said Nigeria remained the destination for investment as well as one of the fastest-growing consumer markets not only in Africa, but the world at large. Adebayo represented by the Permanent Secretary in the Ministry, Edet Akpan, pointed out Nigeria’s consumer market was valued at $377 billion in 2013, and expected to peak at $454.3 billion in 2025.
According to him, this growth is driven by three major factors – population, urbanisation, and increased spending power.Furthermore, he added that Nigerian population estimated at 200 million people with 72 per cent under the age of 30, indicates huge potential for future investment and consumption activities.
“It is projected by the United Nations (UN) that most global population, between 2017 and 2030, will be absorbed by cities, and that new residents in urban areas will count for about 1.1 billion over the next 13 years.“Similarly, the UN Department of Economic and Social Affairs, forecasts that 66% of the world population (2.5 billion people) will reside in urban areas by 2050. “This anticipated push towards urban centres will undoubtedly provide a unique opportunity for the growth of the consumer sector.”
Therefore, he submitted that nations must be proactive and focused to deliver the right policies and programmes using critical institutions both public and private to boost output, by providing the right environment and financing for businesses to thrive. He added that this is where the capital market should take the lead as a financial intermediate, noting that the federal government remains committed to improving the business environment towards Industrialisation and economic prosperity.He added that the restriction of the availability of foreign exchange to the importation of 44 items in 2019, and the recent border closure hinge on government’s policy of enhancing demand for locally manufactured goods and enabling favourable competition amongst manufacturers.
“The Federal Ministry of Industry, Trade and Investment, through the Nigeria Industrial Revolution Plan (NIRP), is also addressing some key challenges in the manufacturing sector.“These include: limited access to credit and financial services, poor infrastructure and unreliable power supply, which have resulted to reduced competitiveness and profitability.”