Uwaleke recommends itemizing of State-Owned Enterprises on NGX to fund growth throughout Nigeria 

Nigeria’s first Professor of Capital Market Research, Professor Uche Uwaleke, has suggested the federal authorities to record state-owned enterprises on the Nigerian Trade (NGX) to fund growth throughout the nation.

He made this identified on Wednesday, February 26, 2025, whereas delivering Nasarawa State College’s fiftieth Inaugural Lecture, tagged “Unlocking Wealth and Leveraging Entrepreneurial Information Ecosystems: Understanding Capital-Harnessing Necessities.”

Prof. Uwaleke presently serves because the Director of the Institute of Capital Market Research at Nasarawa State College, Keffi.

Unlocking Nigeria’s Hidden Wealth   

Talking on the occasion, he acknowledged that whereas the Nigerian capital market has recorded exceptional enhancements within the final decade, a number of challenges inhibit the conclusion of its potential.

• He defined that, at lower than 15% of Nigeria’s GDP, the present measurement of the capital market constrains its function in nationwide financial growth.
• He additionally highlighted that the issuer base is just not diversified, with the NGX dominated by just a few firms, leaving the market susceptible to shocks.

“Solely 10 out of 151 listed firms account for over 60% of equities market capitalization,” he acknowledged.

• In accordance with him, because the nation continues to witness enhancements within the macroeconomic setting, the necessity to entry long-term capital to speed up financial progress can’t be overstated.
• He proposed the adoption of the “Incentives, Privatization, Optimization” (IPO) method to strengthen the capital market in Nigeria and harness long-term funds required to develop an entrepreneurial information ecosystem and unlock wealth.
• On privatization, he acknowledged that in rising markets, privatization or itemizing of state-owned enterprises has confirmed to be one of many strongest levers for influencing issuer demand.

“The Federal Authorities (FG) is due to this fact suggested to promote stakes in state-owned enterprises by means of the Exchanges to lift funds for growth,” he acknowledged.

• Citing a method, he stated the FG could make it doable for the general public to put money into the oil and gasoline sector by means of the creation of a Particular Function Automobile, which will be listed on the Nigerian Trade.

Relating to incentives, he emphasised that these might take numerous varieties and have the potential to encourage extra firms to hunt citation on the Trade.

• He known as for the introduction of a tiered company tax system in favor of public firms listed on the Trade, in addition to tax breaks for newly quoted firms for a time period (say, one 12 months).
• He recommended that Nigerian universities might additionally faucet into the capital market by means of the issuance of bonds on securities exchanges.

“The Nationwide Universities Fee (NUC) ought to rise to the event by recurrently rating universities in Nigeria to stimulate the curiosity of score companies,”he added.

He additionally known as on the federal government to optimize the nation’s capital market potential by encouraging investments in Actual Property Funding Trusts (REITs) to unlock capital for housing growth, in addition to develop a strong secondary mortgage market to enhance entry to reasonably priced housing finance.

He maintained that unlocking Nigeria’s hidden wealth by means of the capital market is feasible if stakeholders leverage the market’s potential to mobilize and allocate assets whereas rising the entrepreneurial information ecosystem.

What You Ought to Know   

The Nigerian Trade is a inventory trade that permits buyers to commerce and record securities.

• The NGX skilled exceptional progress in 2024, as a wave of fairness listings and capital-raising initiatives propelled market metrics.
• In January, whole market capitalization surged by 53.37%, climbing from N40.918 trillion to N62.76 trillion, whereas the All-Share Index (ASI) superior by 37.65%, closing the 12 months at 102,926.40 foundation factors.
• This vital enlargement was underpinned by the itemizing of 269.942 billion shares, valued at N5.839 trillion, throughout a number of sectors.

The 12 months’s fairness actions mirrored a strategic mixture of public choices, rights points, and personal placements, as firms raised capital to adjust to regulatory mandates, deal with overseas trade challenges, and fund strategic progress initiatives.