Nigerian govt borrowed N2.36trn from capital market in 2020 – Onyema

The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Oscar Onyema, said on Tuesday the Federal Government raised a total sum of N2.36 trillion from the capital market in 2020.

Onyema, who disclosed this at a public forum on the 2020 market performance and outlook for 2021 in Lagos, said private companies raised N192 billion during the period.

He added that the federal government raised 92 percent of bonds issued during the period to finance fiscal and infrastructure deficits.

In finance, a bond is an instrument of indebtedness.

Onyema said: “Capital-raising activities in the fixed income market increased significantly in 2020. The NSE’s bond market capitalisation rose by 35.52 percent from N12.92trillion in 2019 to N17.50trillion.

“The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses, but largely remained resilient and orderly amid rising uncertainty.”

The NSE chief also outlined some of the achievements recorded in the capital market last year.

He added: “There is the N23 billion 15 percent Fixed Rate Series 1 bond, a premier bond listing that illustrated the potential of the Exchange to support fintechs and growth companies across various economic sectors.”

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“Others include the Dangote Cement’s N100 billion 12.50 percent Series 1 bond under its N300 billion bond programme which became the largest corporate bond issuance in Nigeria’s fixed income market.

“We also have the listing of Primero Plc’s first bond on the NSE – the Primero BRT Securitisation SPV Plc bond valued at N16.5 billion

“At the close of the year, the NSE’s equity market capitalisation was up by 62.42 percent from N12.97trillion in 2019 to N21.06trillion in 2020. The market turnover saw an uptick of 7.25 percent from N0.96trillon in 2019 to N1.03trillion in 2020.

“Although Initial Public Offering activity was mute, the value of supplementary issues increased dramatically from 2019, rising by 851.37 percent to N1.42trillion from N148.77billion.”

.Nigerian govt borrowed N2.36trn from capital market in 2020 – Onyema. . | ..

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