This is Nigeria: “On June 9, 2023, the Nigerian Exchange (NGX) closed with a market capitalization of N30.45 trillion, which was about $65.5 billion at the old exchange rate. And in 2024, the NGX closed the first half of the year with a market capitalization of N56.6 trillion, about $37.7 billion. Hence, the disparity between both periods amounted to $27.8 billion, thus pushing the NGX out of the list of top five largest stock markets in Africa“ – Nairametrics
In other words, while prices of fuel, electricity, etc were going up, investors in the Nigerian stock exchange lost more than 50% of their (absolute) wealth, benchmarked in US dollars. In comparison, the largest market in Africa (South Africa’s Johannesburg Stock Exchange) is at about $1.2 TRILLION, and now Nigeria operates at about sub-$40b. Naspers in South Africa can buy the Nigerian stock exchange with less than 30% of its global wealth now.
Good People, this is an unprecedented wealth deterioration because even during the Biafra War, both the Nigerian pounds and Biafran pounds appreciated in value. But in a peaceful time, we saw what we experienced last year. That means that ALL of us in Nigeria dropped the ball, and this must be quickly reversed to advance shared prosperity.
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One step forward, two steps backward. What is the to say? Nobody needs to explain failure, it’s self-evident.