Liquidity constraint, poor incentives stall market-making takeoff | The Guardian Nigeria News - Nigeria and World News

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The Nigerian Exchange Limited (NGX) has listed illiquidity and failure to attract the needed capital as major setbacks to the takeoff of the market-making initiative.

Besides, lack of incentives such as enhanced revenue opportunities as well as attractive transaction and regulatory fees are listed as some of the constraints.

Group Chief Executive Officer of the NGX, Temi Popoola, while speaking on the 2023 outlook, said the exchange’s struggle to attract the right capital, in addition to the non-existence of incentives that would attract companies to the programme, were major setbacks to the rollout of the programme. He assured stakeholders that NGX is committed to tackling liquidity constraints and ensuring a sustained flow of funds in the capital market.

Divisional Head of Capital Market at NGX, Jude Chiemeka said the new, reformed market-making platform has a commercial incentive that would allow companies to create needed liquidity.

 

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