According to Prof. Ndubuisi Ekekwe, a tech entrepreneur and innovator based in the United States, the Nigerian Stock Exchange has experienced significant growth over the past eight months under President Bola Ahmed Tinubu.
However, he points out the irony that, despite this impressive stock market performance, a larger number of Nigerians find themselves in a state of increased poverty.
Ekekwe’s response was triggered by an article titled “In eight months of Tinubu administration, Nigeria’s stock market,” authored by Bayo Onanuga, the Presidential aide on Information and Strategy.
Onanuga highlighted that the NGX achieved a remarkable 45.90% growth in 2023, surpassing the performance of S & P 500, Shanghai Stock Exchange, Johannesburg, Ghana Stock SE, and Nairobi SE.
Ekekwe acknowledges the factual growth rate of the NGX but asserts that the surge in stock and equity values has had the adverse effect of exacerbating poverty and causing distress among many individuals.
He emphasized that despite Nigeria’s stock market growth, foreign investors are not flocking to the country due to the devaluation of the Naira and the alarming inflation rate, which stood at 28.92% in December.
“The Nigeria stock exchange has been growing on absolute Naira, but on the real value, it is not. That statement is factual, but the irony is that the growth, as noted by Bayo, has made many people poorer and depressed the overall value of the stock market.
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“That is why foreign investors are not coming for that 45 per cent gain because if you made 45 per cent on equity but lost 50 per cent on currency, with 30 per cent on inflation, you are poorer”, he said.
At the conclusion of Friday’s trading session, the NGX’s All-Share Index achieved a historic peak of 94,538.12 points, marking a 2.87% increase.
This milestone occurred amid the backdrop of the NGX’s All-Share Index experiencing a substantial growth of 45.90% throughout the year 2023.