Nigerian Companies Increasingly Seem To Fancy A London Stock Exchange Listing

The London Stock Exchange (LSE) recently released a list of the top 343 firms in 42 African countries to watch out for. On the list were several indigenous Nigerian companies including payment processor Interswitch, biscuit manufacturer Beloxxi Industries, Arik Air, Channels Tv, Fan Milk International, Chams, Sigma Pensions, St. Nicholas Hospitals, Jumia, Konga  and foam manufacturer Mouka Foam.

The mere fact that the LSE has these companies listed suggest that it has started discussions with them about listing on the London Stock Exchange. It also means that the NSE perhaps lacks the prestige and pedigree that these companies seek, as London is one of the financial capitals of the world.

Yet the Nigerian Stock Exchange has done several road shows on an annual basis without much progress. There are very few foreign listings on the Nigerian bourse. It must look within rather than going for road shows. The Exchange needs to do more with bodies such as the National Association of Small and Medium Scale Enterprises (NASME), and various chambers of commerce in the country.

While the management of the Exchange has fashioned out another tier for small scale firms, more awareness need to be created. The performance of firms on the exchange leaves much to be desired. Many of the SMEs listed on the Exchange are currently trading at nominal levels.

The Nigerian exchange still grapples with challenges such as low liquidity and poor enforcement of its own rules.