Kayode Tokede

The Association of Issuing Houses of Nigeria (AIHN) has disclosed that about N12.83trillion in Open Market Operation (OMO) bills and Treasury (T-bills) were sold in 2024 compared to N716.7 billion for the whole of 2023.

This was disclosed by president, AIHN, Kemi Awodein during its Annual General Meeting (AGM) and presentation of 2024 financial statements in Lagos.

She revealed that the growth was driven by federal government policies and the anticipation of interest rate by the Central Bank of Nigeria (CBN).

“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,” she said.

Awodein explained that the high-interest environment saw the crowding out of the private sector, affecting issuance activities.

She disclosed that government borrowing increased significantly, as efforts to manage liquidity were also heightened.

The AIHN financial statements for 2024 showed that total funds and liabilities grew from N452.6million in 2023 to N518.2million in 2024.

Its total income grew from N86.56 million in 2023 to N123.6 million in 2024, while expenditure for 2023 stood at N50.08 million. Spending for 2024 was N60.75 million resulting in a surplus of N36.4 million and N62.9 million for 2023 and 2024 respectively.

At its yearly Investment Banking Awards held at the weekend in Lagos, Awode urged Nigerians to embrace regulated investment products.

The event recognises excellence in Nigeria’s capital market ecosystem, while also unveiling the association’s new executive committee members.

The association noted that despite tough conditions in 2024, companies have raised capital, pursued mergers and acquisitions, and issued debts, demonstrating confidence in the economy.

Awodein stated that the tough economic conditions in 2024 did not deter companies seeking capital for expansion, mergers and acquisitions, as well as debt issuances.

Awodein said the awards reflect the resilience of the Nigerian economy despite notable challenges in 2024, saying that, “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.”

Looking ahead, she projected heightened activity in the equity capital market driven by recapitalisation exercises across banking, insurance and pension sectors.

Awodein also urged more Nigerians to embrace regulated investment products to curb rising losses to Ponzi schemes.

“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 added.

Representing Lagos State Governor, Babajide Sanwo-Olu, the Commissioner for Finance, Abayomi Oluyomi, commended AIHN for consistently promoting excellence and strengthening investor confidence.

“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 said.

He encouraged investment banks to deepen partnerships with local businesses, fund startups, support sustainable projects and design products that expand opportunities for Nigerian youths.

Chief Executive Officer of Nigerian Exchange Limited, Jude Chiemeka, described the event as a celebration of the pivotal work issuing houses play in capital formation.

He highlighted the impact of digital platforms on market participation, noting that NGX’s digital offering dramatically boosted retail investor numbers from under 300,000 to nearly 850,000.

Chiemeka also welcomed the Securities and Exchange Commission (SEC) move towards securitisation and municipal bonds, saying it would deepen the capital market, diversify available asset classes, and enhance long-term financing options for corporates and sub-nationals.