In a remarkable turnaround, Nigeria’s Association of Issuing Houses of Nigeria (AIHN) orchestrated the sale of N12.83 trillion in Open Market Operations (OMO) bills and Treasury bills (T-bills) throughout 2024, a staggering leap from the mere N716.7 billion raised the previous year. This surge, unveiled by AIHN President Kemi Awodein at the group’s Annual General Meeting (AGM) in Lagos, underscores the capital market’s adaptability in a year marked by economic turbulence.
The boom stemmed largely from proactive federal government strategies and market bets on impending interest rate reductions by the Central Bank of Nigeria (CBN). Investors flocked to these safe-haven instruments, drawn by attractive yields in a high-inflation environment. A milestone came with the Debt Management Office’s debut domestic dollar bond, injecting fresh vitality into local debt markets. Yet, this fervor came at a cost: soaring interest rates sidelined private sector fundraising, as government needs dominated the borrowing landscape. Public debt issuance ballooned, while CBN ramped up liquidity controls to stabilize the naira and curb excess cash flows.
AIHN’s own ledger mirrored this resilience. Total funds and liabilities climbed from N452.6 million in 2023 to N518.2 million last year. Revenues swelled 43% to N123.6 million, outpacing expenses of N60.75 million and yielding a healthy N62.9 million surplus, up from N36.4 million prior. These gains highlight the association’s pivotal role in channeling funds efficiently despite headwinds like currency volatility and global uncertainties.
The AGM doubled as a platform for the Investment Banking Awards, honoring top performers in Nigeria’s financial ecosystem and installing a refreshed executive team. Amid celebrations, Awodein spotlighted corporate tenacity: firms pressed ahead with equity raises, mergers, acquisitions, and bond issuances, signaling underlying economic confidence. “Despite the headwinds we saw in 2024, companies still raised capital, sought partners for M&A transactions and issued debts. This shows the economy was tottering, but confidence remained. These awards underscore that commitment.”
Peering forward, Awodein forecasts a vibrant equity market, fueled by mandatory recapitalizations in banking, insurance, and pensions. She also issued a stark warning on financial literacy, pushing citizens toward vetted investments to sidestep rampant Ponzi traps. “There is capital in Nigeria looking for a home. Unfortunately, Ponzi schemes exploit this. We must bring more investors into structured, well-governed, traditional investment products,” she emphasized. “This was driven by government policies and the anticipation of interest rate cuts in other markets. Significant in the year was the successful issuance of the first domestic dollar bond by the Debt Management Office.”
Lagos State Finance Commissioner Abayomi Oluyomi, standing in for Governor Babajide Sanwo-Olu, lauded AIHN’s contributions to investor trust and growth. “Investment banking plays a critical role in shaping the future of our economy. Each deal closed contributes to national development. Lagos remains open for business and committed to improving the ease of doing business, infrastructure and regulatory collaboration,” he affirmed. He called for deeper ties with startups, green initiatives, and youth-focused financing.
Nigerian Exchange (NGX) CEO Jude Chiemeka hailed the occasion as a nod to issuing houses’ capital-mobilization prowess. Digital innovations, he noted, exploded retail participation, from fewer than 300,000 to almost 850,000 investors. He applauded the Securities and Exchange Commission’s (SEC) push for securitization and municipal bonds, poised to broaden asset options and bolster long-term funding for businesses and states.
Overall, 2024 painted a picture of a market under strain yet unbowed, with AIHN at the helm steering through fiscal storms toward steadier horizons.
