The Nigeria Stock Exchange (NSE) has said that it will partner the Ministry of Mines and Steel Development to establish a $600 million Investment Fund to boost the sector which is strategic in the Federal Government’s economic recovery plan.
The Chief Executive Officer, NSE, Oscar Onyema, disclosed this in his goodwill message to the ongoing National Mining Summit & ConMin West Africa, holding in Abuja.
According to Onyema: “For the Nigerian Mining Sector, current statistics present an immense opportunity for growth, today, the sector accounts for 0.02 percent of exports, 0.3 percent of national employment and contributes 0.5 percent an estimated $2 billion to the nation’s Gross Domestic Product (GDP) , this representation pales in comparison to global trends for the sector in 2015,” he noted.
He observed that the summit is expected to provide the framework for a sustainable and enabling environment for the continued growth and development of the Mining sector, and for the diversification of the nation’s economy in general.
He added that “The Nigerian Stock Exchange is well positioned as a premier listing destination for African corporations, government and international issuers looking to access the capital market of the largest economy in Africa. With a total market capitalisation of $62.6billion as at June 9th, across all asset classes, the Exchange provides a platform to raise both equity and fixed income capital for project financing and business expansion.”
“There are currently 176 listed companies on the Exchange representing diverse sectors of the economy, and the market amongst others is a little over N5 billion. On the fixed income side, we have a total bond market capitalisation of $24.6million of which $1.85 billion was issued amongst 18 state governments for infrastructure and project funding.”
He also said: “Most countries in the West African sub-region have since developed country-level strategies, and we have reports of achievement that are already being recorded under the stewardship of my ministerial counterparts.”
To him, African Mining Vision (AMV), is one of the most promising instruments that unite the whole continent towards achieving particular goals, and it is through building economic and social linkages that would benefit all.
“We, however, realise that we cannot go very far with our agenda if we do not feature strongly in the reckoning of international mining community as serious mining destination and we have found bearing from AVM,” he added.