The Nigerian Stock Exchange

The Nigerian stock exchange was established in 1960 as an organ of the Nigerian capital market. Originally known as the Lagos Stock Exchange at inception, it was reconstituted into the Nigerian Stock Exchange in 1977. Presently, it has eight exchange offices outside Lagos in Abuja , Kaduna , Port Harcourt , Kano , Onitsha , Ibadan , Yola and Benin .

Functions of the Nigerian Stock Exchange

providing appropriate machinery to facilitate further offerings of stocks and shares to the general public
promote the increasing participation by the public in the private sector of the economy
provide opportunities for raising new and fresh capital

The Nigerian Stock Exchange currently has a total of 283 listed securities in two market segments- first tier securities market and second tier securities market. The first tier market is for companies that have at least 25 percent of their equity capital available to the public among other requirements, while the second tier market is for upcoming small and medium enterprises that have 100 percent of their equity capital available to the market.

The Nigerian Stock Exchange Automated Trading System (ATS)

Trading/ transactions on the floor of the Nigerian stock exchange are done through the automated trading system(ATS). Before it became functional, the call over system was what was in effect. The ATS is a security trading arrangement whereby transactions are achieved through a network of computers. It was established in April 27, 1999 .

Trading on the ATS starts at 11.00 and closes at 13.00, Monday to Friday (except on public holidays).

The Securities and Exchange Commission

In order to ensure fairness in the dealings on the floor of the exchange, a supervisory body known as the Securities & Exchange Commission (SEC) was established in 1979. Some of its functions among other things include:

Maintaining surveillance over the securities market to ensure orderly, fair and equitable dealings.
Determining the amount of securities of a company to be sold to the public through offers for sale, subscription or otherwise.
Clearing and settlement

The Central Securities And Clearing System (CSCS)

To aid effectiveness in transactions on the trading floor of the Nigerian Stock Exchange, the Central Securities And Clearing System (CSCS), was set up in April 14, 1997 with the main purpose of clearing and settlement of trades for the NSE. It’s also known as the Central Securities Depository (CSD).

Consequently, the settlement cycle reduced with effect t from march 200, from T+5 to T+3.(T+5 i.e. transaction day plus 5 working days, T+3 i.e. transaction day plus 3 working days)

Settlement banks to the CSCS

The settlement banks to the CSCS include GT Bank Plc, Intercontinental Bank Plc, Sterling Bank Plc, Oceanic Bank Plc, Zenith Bank Plc, Access Bank Plc, Union Bank Plc, Spring Bank Plc, unity bank plc, Diamond Bank Plc, UBA Plc, Fidelity Bank Plc and Afribank Plc.

Charges on the Nigerian Stock Exchnage

Taxes on interest and dividend stands at 10 percent, corporate income tax-35 percent and transaction cost on the buy and sell side ranges between 4percent -- 4.2 percent.

Performance of the Nigerian Stock Market

The Nigerian stock market has performed exceptionally well in recent years. Many investors link this to the successful recapitalization of the Nigerian banks in 2005, which was initiated by the Central Bank Of Nigeria .

The exchange now experience cross border listings and transactions, high influx of foreign investments and investors and is adjudged to be one of or possibly the fastest growing exchange in the world. It boasts of over 10 million shareholders/ investors.

Contact information

The Nigerian Stock Exchange
Stock Exchange House
2/4 customs street (8^th & 9^th floors)
P.O Box 2457
Lagos Nigeria
Tel: (+234) 01- 2660287, 2660335, 2669978
Website: www.nigerianstockexchange.com