Stakeholders in the capital market have criticised the 10 per cent contribution of the Nigerian capital market to the economy.

The stakeholders, who spoke at the 11th annual conference in Lagos on Saturday, said the current performance of the Nigerian capital market to the Gross Domestic Product was low.

While speaking at the conference which was tagged, ‘Sustainability of the Nigerian Capital Market as a catalyst for Economic Growth and Prosperity,’ a Senior Partner at Biodun Adedipe& Co, Dr. Abiodun Adedipe, said the common assumption that the stock market and economic moved in concert had weakened in recent times.

According to him, critical sectors that largely contributed between 70 per cent and 85 per cent to the Nigerian GDP were yet to be incorporated into the Nigerian capital market. He said, “In fact, movements in the market and the economy are no longer synchronised because they do that for just a while and thereafter they diverge. I found a very weak correlation between the movement’s growth of the major metrics in our stock market, with the growth of our GDP, very weak and negative covariance. The market capitalisation is less than 10 per cent of GDP. In some jurisdictions, you see it up to two 250 per cent and 300 per cent. Some of the major sectors that contribute the most to GDP are not well represented in this capital market. I found six sectors in our economy and they include agriculture, trade, ICT and then manufacturing. Then, we will take mining, quarrying, and real estate. If you check your data, those six sectors contribute between 77 per cent and  82 per cent of Nigerian GDP.”

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