The Nigerian Stock Exchange (NSE) has called on the Microfinance Banks in Nigeria to take advantage of enormous opportunities available at the nation’s capital market to aid their expansion strategies and grow their businesses.
The chief Executive Officer of the Exchange, Mr. Oscar Onyema speaking during the listing by introduction, Fortis Microfinance Bank’s 1,630,091,000 ordinary shares of 50 kobo each at N5.00 on the floor of the NSE said that the stock market provides various benefits to corporate entities, such as microfinance banks in the provision of long-term capital.
Onyema encouraged the companies to utilise the opportunities available at the capital market as part of the financing mix for their various businesses.
Onyema noted that as Nigeria’s microfinance banks sector grows, he firmly believes that the NSE was the right platform to raise capital towards this growth and expansion.
He noted that the Exchange is emerging stronger and more focused and that despite recent setbacks, “we look forward to sustained recovery in the capital market as it continues to be reformed and strengthened. We want to ensure that all of your companies, listed or prospective realize the value of listing on The Exchange, and indeed forums such as this are vital in that effort”.
The Chief Executive Officer call on some of these banks in the country who are still foot-dragging to approach the market for listing as there is enormous benefits to be derived from such listing.
He said aside from giving them the needed impetus to be recognised both locally and internationally, quoted companies are better managed because they are bound to open their books to the public for scrutiny.
Onyema said with the listing of Fortis MFB on The Exchange, the company becomes the second micro finance bank to be listed on the market out of 600 licensed by the Central Bank of Nigeria (CBN).
“The listing of Fortis MFB now bring the total listed equities on the Exchange to 200, even as the company has added an addition of N3.43 billion, thus bringing the cumulative market capitalisation to N8.1 billion”, he added.
In a bid to finding lasting solution to the growing incidence of insecurity in the country, the Fortis Managing Director/ Chief Executive Officer, Mr. Kunle Oketikun said that there is need for the Federal Government to inject funding and develop the Micro Finance Bank subsector of the economy.
He said the spate of insecurity in the domestic economy is as a result of the high rate of the productive class not being meaningfully engaged by the both the private and public sector.
According to him, given the operational modus of Micro Finance Banking in the country, if they are well funded, they will be able to crate job opportunities and make the productive class engaged meaningfully.
“We will help create jobs and make them engage in little businesses that would starve the Boko Haram of army of youths to prosecute their activities.