Second Tier Securities Market
The Nigerian Stock Exchange was launched in 1960 as the Lagos Stock Exchange. It became the Nigerian Stock Exchange in 1967 and currently has 5 other trading floors across the country in Kaduna, Port Harcourt, Kano, Onitsha and Ibadan. A recent report commissioned by the Federal Government, proposed the reversal of the Nigerian Stock Exchange to the Lagos Stock Exchange and the opening of a new national exchange in Abuja, the Federal Capital.
There are currently 285 securities listed on the exchange made up of 195 equities, 54 industrial loans/debentures, 2 preference stocks and 23 government bonds/development stock. Quoted companies represent almost every sector of the economy, due largely to a large scale privatisation/commercialisation programme in the early 1990s which resulted in a large number of government run enterprises being listed on the Stock Exchange. The banking sector, with 24 stocks dominates the market. The top 10 companies currently account for halt of the market.
There are 217 dealing members of the Nigerian Stock Exchange. Trading is carried out daily by way of an Automated Trading System (ATS) between 11 a.m. and 2 p.m. Trading is in lots of 100 and a pricing limit of 5% either way of a stock's daily opening price is in place. Brokerage commission is charged by stock-brokers at a rate negotiated with the client but which generally follows the guidelines of the Stock Exchange.
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