The capital market would see a renewal in Exchange Traded Fund (ETF) listings as four new ETFs were being planned just as the leading ETFs market in West Africa now has a market capitalisation of N8.87 billion ($19.25 million).
The Chief Executive Officer, Nigerian Exchange Limited (NGX), Temi Popoola, stated this at the NGX’s ETFs conference.
Popoola however said Nigeria’s market is still growing compared to the South African ETF market with a $7.11bn capitalisation.
He said, “There has been a dearth of new ETFs listings on the NGX in recent years. However, there are bright spots on the horizon with four new ETF listings in the pipeline. It is incumbent to state that current macroeconomic challenges resulting in the exit of Foreign Investors impacted the ETFs space which resulted in a sharp dip in the ETFs market Cap from 2020 highs of N24.5 billion.
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“We are hopeful that the policy tilt of the new administration would impact positively on our market,” he said while speaking at the conference themed “ETFs in the Nigerian Capital Market: Opportunities and Challenges”.
The Executive Commissioner, Operations, Securities and Exchanges Commission (SEC), Dayo Obisan, urged all stakeholders including the Fund Managers Association, NGX, and other institutional investors to extend the message of ETFs to deepen the market and make the asset class more vibrant, thereby driving growth in the capital market.
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