Govt’s plan to borrow locally will lift fixed income market –NSE DG

The Nigerian government’s resolve to accomplish its fiscal ambition by looking the way of the domestic fixed income market to raise fund will stimulate financial market operations tremendously, Oscar Onyema, the Director General of the Nigerian Stock Exchange said Monday.

He stated at a webinar commemorating the 10th anniversary of Brand Africa 100 that government would undertake a policy shift from seeking Eurobonds abroad and look inward to source capital through public debt.

“We expect government and corporate companies to raise capital using different platforms, and capital market is one of it,” he said.

Envisaging that the capital market would not experience initial public offerings in the short term, he noted that the coronavirus pandemic had upended the balance of businesses and governmental structures around the world just as the individuals have been adversely impacted.

Read also: IMF considers Nigeria’s request to borrow $3.4bn

According to him, the capital market encountered several disruptions shortly after the virus broke out, recording the largest single day of 5% in the process.

Several international investors had left the market following the discovery in February of the first coronavirus case in Nigeria.

However, the equity market has shown some signs of rebound lately, a progress Mr. Onyema attributed to reallocation of investments from other sources to the market on the account of recent improvement in yields.

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