•Says China needs Africa to emerge 21st century economic powerhouse

in Abuja

Chairman of Nigerian Exchange Group (NGX), Dr. UmaruKwairanga, has stated that the group is exploring areas of collaboration with Shanghai Stock Exchange (SSE) that would be mutually beneficial.

Kwairanga spoke during a board interaction between both exchanges in Shanghai, China. He stated that China had overcome many challenges and was now recognised as an economic powerhouse, a manufacturing giant, and a key driver of the world’s economy.

According to him, that success is mirrored in Shanghai Stock Exchange, which in a little over three decades of its re-establishment became one of the world’s leading exchanges with a market capitalisation in excess of $6 trillion.

The NGX chairman observed that Nigeria and China shared many similarities, adding that just like China, Nigeria has a diverse and hardworking population that is the largest in Africa.

He said, “Nigeria’s economy is driven by small and medium scale enterprises, but there is a large public sector with government-owned enterprises controlling significant portions of the economy.

“In terms of exchanges, Nigeria has several but the first and foremost is the Nigerian Exchange Group, which was founded more than 60 years ago and presently has over 400 listed securities and a market capitalisation of about 325 billion Chinese yuan.

“This is small compared to the capitalisation of some companies I see quoted on your board, but we are determined to multiply those numbers with the assistance of your exchange and China’s entrepreneurial citizens.

“So we are here to congratulate you on your success as a nation and an exchange, but, more importantly, to learn from your experiences as a vibrant, innovative, technology-driven exchange in a bustling economy.”

Kwairanga added, “The Nigerian Stock Exchange was established more than 60 years ago, but it was just over three years ago that we transformed from a mutual organisation limited by guarantee to a for Profit Public Company owned by and run for the benefit of thousands of shareholders.

“That transformation has come with various challenges in such areas as governance and regulation, technology, market expansion and product development and cost optimisation and profitability.

“We know that the Shanghai Stock Exchange has most probably tackled and surmounted similar challenges and so we look forward to learning from your experience and partnering with you to move forward very quickly.

“In a highly competitive, fast evolving borderless world, we think that engagements and collaborations will determine the survival and growth of exchanges such as ours and that there are many areas for cooperation between the SSE and the NGX.

“So, we are here to share, collaborate, learn, and to partner with you and look forward to tremendous benefits from both sides at the end of this visit.”

Speaking at the China-Africa Economic and Trade Expo, Kwairanga declared that China had the human and financial resources, the infrastructure, and the right strategy to be the economic powerhouse of the 21st century.

However, Kwairanga explained that to sustain that position, China needed Africa, which had the human and natural resources that positioned it as another potential future power.

He stated, “That is why a forum such as this is important. Events like these offer opportunities to learn from your success as a nation. But beyond that, it allows us to discuss areas of mutual cooperation that will hasten Africa’s development and sustain Chinese leadership.

“Let me also say that I am very impressed by the calibre of participants at this expo. Given their positions, I have no doubt that the discussions we have over the next few days will lead to tangible agreements and actionable decisions whose practical impact we will see in our companies, communities and countries within a very short time.”