Nigerian Stock Exchange

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The Nigerian Stock Exchange (NSE)

Was established in 1960 and currently has some 283 listed corporation|companies with a total Market capitalization|market capitalisation as at March 09, 2007 of about N8.2 trillion ($64.5 billion). All listings are included in the only stock market index|index, the Nigerian Stock Exchange All Shares Index (website [1]).

In 1998, the NSE management protested to the government about a report of a committee the government had established, headed by the respected banker Dennis Odife, on the reform of Nigeria's capital market. The NSE said that the report's recommendations for setting up what would be called the Stock Exchange of Nigeria (SEN), coupled with the reversion of the NSE to its former name of the Lagos Stock Exchange (LSE), was bound to be misunderstood by many Nigerian and foreign investors, who might question its downgrading to a local exchange. NSE officials requested that the exchange retain its name and be allowed to operate on a level playing field with the proposed government exchange, and argued that SEN should not be given undue advantage over the NSE and other competitors. The Securities and Exchange Commission (SEC), the apex government body which regulation|regulates the capital market in Nigeria, favours a multiple exchange system, which it views as a better option for attracting investors to cities other than Lagos, where capital market activities are concentrated.

The Lagos Exchange is an affiliate member of the Federation of International Stock Exchanges (FIBV). It is also an Observer at meetings of International Organization of Securities Commissions (IOSCO), and a foundation member of the African Stock Exchanges Association (ASEA).

The Exchange has an Automated Trading System. Data on listed companies' performances are published daily, weekly, monthly, quarterly and annually.

In order to encourage foreign investment in Nigeria, the government has abolished legislation preventing the flow of foreign capital into the country. This has allowed foreign Stock broker|brokers to enlist as dealers on the Nigerian Stock Exchange and investors of any nationality are free to invest. Nigerian companies are also allowed multiple and cross border listings on foreign markets.

Trading days and times on the Lagos Exchange are Monday to Friday, 11:00 to 13:00. Charges include a 3% commission on the traded value of shares and a 1% Securities and Exchange Commission fee. Withholding tax on dividend and interest remains at 10%; corporate income tax, 35%, capital gains tax, 10%.