Why Nigeria’s economic growth is slow’

HE Group Managing Director, Financial Trust Company Nigeria Limited, Alexander Ajayi, has attributed the slow pace of Nigeria’s economic growth to businesses’ apathy to list on the Nigerian Stock Exchange.

He stated this while addressing newsmen at the sideline of the company’s 40th anniversary celebration held in Lagos. 

He said: “The poor enthusiasm to list is a big problem. I know that so many efforts are being made to get some of the unlisted giants to get listed in the market. So the primary market has to be energised. 

There is a downturn right now and there is no enthusiasm to come to the primary market to come and issue an IPO. But listing is going to be the way to grow the market and the general economy.” “The deregulation and privatisation of Nigeria’s economy is a critical factor. 

The private sector has to drive the economy. And government has to raise debts, firms and industries have to get listed to raise more capital. The objective of the market, I think, is to hit $1 trillion in market capitalisation and you are going to have to list the biggest companies in this country.

Private sector refineries 

The power sector has to come in, including oil and gas. Deregulation has to be real. Companies are going to come and they are going to need capital to build their capacity to build private sector refineries, to grow industries, manufacturing. 

There is so much capacity that needs to be developed in this country,” he stated. Speaking on the company’s strategy to reclaim its position as Nigeria’s premier stockbroking house, Ajayi said: “Our strategy is to basically take on what the market gives. 

We want to key in as facilitators and intermediaries in the market both on the equity and debt side. And also to access all the other platforms, the NASD, the FMDQ, these are platforms in the market we want to access. 

Each of them requires different level of capitalisation and we will go there and develop our services. We are building capacity.” We are learning and we are developing products and services so that people can come to the market or raise capital. ” 

Speaking further, he said: “Our strategy for competition is to be able to compete at both institutional and retail level. 

At the retail level, it is to use the online platforms to attract clients. At the institutional level, it is to basically go wholesale brokerage services, provide buying and services for pension funds and insurance companies. We want to penetrate there again. 

We used to have strong institutional client base, so it is to get back there so that they can patronise us.”