There is a culture of mistrust in Nigeria that has been entrenched over many years and the current disaster over the Nigerian Stock Exchange is a logical conclusion to the absence of transparency and integrity in the market. Here are some interesting statistics on the number of shareholders in Nigeria – or estimates of statistics of the number of shareholders in Nigeria. Its ball park stuff.
The figures exclude duplicates and are compared with the number of mobile phone users and the number of Internet users. These statistics could be wrong by 20% but my message would not change. What is my message?
My message is that the Internet as a communications tool has to be the core information and data dissemination platform for market data in Nigeria. The Nigerian Stock exchange should stop rent seeking market data make it readily available for free to the market. The Nigerian Stock Exchange should immediately come up with an enforce minimum standards of online disclosure AFTER consulting with listed companies. To me the simplest non-disclosure of information sends a strong message.
What evidence do I have that my message might, just might, have some substance?
There are probably around 10 million shareholders in Nigeria. There are 33 million + internet users and + 68 million mobile users
It does not take a rocket scientist to realise that it is highly likely that a significant proportion of shareholders are able to use modern means of communication to receive news, data and market data on listed companies. You may argue that there are already millions of internet users accessing investment data online. If they are they are not getting information from listed companies’ websites – and they should be. Listed companies should realise there is a huge community out there that if treated right could just be a really valuable resource to which to communicate to and from which they can receive feedback. The objective to grow the bottom line and improve corporate reputation. Its this last point that is especially pertinent in Nigeria at the moment because Nigerian investor relations is in a terrible shape.
There is obviously a lot to know about this. I think you made some good points in Features also.
You you should change the post title
What the Nigerian Stock Exchange does not know | African Investor Relations to more catching for your webpage you create. I liked the blog post yet.