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Dangote Refinery, NNPCL’s listing’ll boost market capotalisation, growth – Amolegbe



The Managing Director of Arthur Steven Asset Management Limited, Mr Olatunde Amolegbe, has expressed optimism that the listing of the $20b Dangote Refinery and the Nigeria National Petroleum Company Ltd (NNPCL) on the bourse, as being speculated will give the market capitalisation a push that can engender growth.

Amolegbe said for the $1trn economy dream of President Bola Tinubu, to come true, the country should maintain a 10 percent annual growth for a period of ten years.

The investment expert, who called on the Federal Government to encourage listings on the nation’s bourse, said this would not only deepen the capital market but would engender transparency and boost tax revenue in the country.

Amolegbe spoke at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2023 market review and 2024 outlook, at the Nigerian Exchange building in Lagos.

According to him, Nigeria’s market capitalisation to Domestic Product (GDP) standing at 13 percent against over 50 percent market capitalisation to GDP in many countries is an indication of non participation of most big business concerns.

“This is an indication that majority of the big companies in the country are not participating in the Nigerian capital market,” the former President of the Chartered Institute of Stockbrokers (CIS) observed.

“I believe government needs to consider urging companies particularly those they have direct holding in and those that have huge business with government to list on the market.

“A lot of businesses are not listed on the exchange and they do business a lot with government; the more transparent the listing, the more tax revenue, he said.

He also charged the government on the rising spate of insecurity in the country saying until it is addressed, inflation would continue to soar and investors would remain wary of investing in the country.

“Insecurity is a major issue and government needs to work on it as it is disrupting supply chain and this contributing to the increase in inflation rate, Amolegbe said.

“Farmers are not unable to produce and the ones that can produce can’t get to market.

“As long as the environment is seen as unstable, investors, both local and foreign will continue to be wary of investing, leading to a further decline in foreign exchange inflow,” Amolegbe said.

He added that foreign exchange would be a significant contributor to where the capital market would be by the year end.

“If liquidity improves and price stabilises, organisations can better plan.If not, 2024 might be a dicey year for a lot of quoted companies,” he said.

On the 2023 market performance, he noted that the All-Share Index closed the year at 74,773.77 points while the market capitalisation closed at N40.918 trillion.

Amolegbe listed the events that underpinned the market performance in 2023 to include smooth transition of government, president’s inaugural speech, partial removal of petrol subsidy, unification of foreign exchange and continued monetary policy rate hike.




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