Getting started on the Nigerian Stock Exchange (NSE)

The Nigerian stock exchange (NSE) is the official stock exchange in Nigeria. It was founded as the Lagos Stock Exchange on September 15, 1960, but operations didn’t begin until August 25, 1961. The NSE had seven subscribers to its Memorandum Association, including R.S.V Scott, representing C.T. Bowring and Co. Nigeria Ltd; Investment Company of Nig. Ltd. (ICON); John Holt Ltd; Chief Theophilus Adebayo Doherty; Sir. Odumegwu Ojukwu, Chief Akintola Williams; and Alhaji Shehu Bukar.

As of November 2019, the NSE had 161 listed companies, including 8 domestic companies on the premium board, and 144 companies on the main board, and 4 companies on the Alternative Securities Market (ASeM) board. The Nigerian Stock Exchange has 84 federal government bonds, 21 state government bonds, 27 corporate bonds, 1 supranational bond, and 53 memorandum listings.

The Exchange operates an Automated Trading System (ATS), since April 1999 to date – allowing dealers to trade through a computer network. The NSE launched its next generation trading platform, called X-Gen, in 2013. The new trading platform was designed to enable electronic trading for retail and institutional investors.

The NSE offers listing and trading services, licensing services, market data solutions, ancillary technology services, and more. The Exchange is committed to adopting the highest international standards, according to its website. It has shown this commitment by belonging to several international and regional organizations that foster the development and integration of global standard practices across its operations. The NSE is a member of the World Federation of Exchanges (FIBV). It is a founding member of the African Stock Exchanges Association (ASEA), an observer at the meetings of the International Organization of Securities Commissions (IOSCO), and a member of the Sustainable Stock Exchanges Initiative (SSE).

To encourage foreign investment in Nigeria, the government eradicated the former legislation that prevented the flow of foreign capital into the country. As a result, foreign brokers can enlist on the Nigerian Stock Exchange as dealers. Investors of other nationalities are also allowed to invest. Some Nigerian companies are also listed across multiple foreign markets.

The Nigerian stock exchange also took the initiative to reconstitute the Investors’ Protection Fund in 2012. The move was made in an attempt to promote transparency and trust in the capital market. The Fund was created to compensate investors who risk pecuniary loss from the revocation of the registration of a dealing member; bankruptcy or negligence of a dealing member; defalcation committed by a dealing member; or insolvency.

Time and Prices

Trading on the Nigerian Stock Exchange starts at 9:30 am and closes at 2:30 pm every Monday – Friday. Market prices, All-Share Index, NSE 30, and Sector Indices are all published daily in The Stock Exchange Daily Official List.

Regulation

The NSE is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission (SEC).