AFRICANGLOBE – Africa’s richest man and president of the Nigerian Stock Exchange (NSE), Alhaji Aliko Dangote has been hailed as the force behind the record gains at the stock market over the past one year.
The stock market has recorded gains in excess of N5 trillion ($31 billion) – growing from 2012′s total market capitalization of N6.7 trillion ($41.6 billion) to 2013′s N11 trillion ($68.3 billion) – all under the leadership of the Nigerian businessman.
Dangote was initially elected as the 17th president of the stock exchange in 2009, only for it to be nullified by Federal High Court in Lagos in March 2010. He was, however, re-instated by a court of appeal’s verdict on June 15 2012, which led to his resumption on June 19, 2012.
Market operators and shareholders, who spoke on the development hailed Dangote’s leadership strategy, which they said brought about the growth.
“Dangote has successfully restored a firm order to affairs of the NSE within the past one year.” The Chief Executive Officer of Lambert Trust and Investment Company Limited, Mr David Adonri, said.
“The Board room crisis that he inherited from the previous Council has become a thing of the past.” He added.
He further noted that the NSE is once more poised to taking its rightful position in the capital formation process of the West African nation.
The CEO of Investment Centre Limited, Mr. Ifeanyi Odunwa, also noted that the market that was previously unresponsive to various corrective policies put in place since the meltdown years suddenly started reacting positively on a sustained basis since his return as the NSE president.
Critics however dispute the growth, claiming the growth impact has not trickled down to the penny stocks.
“What has happened to the penny stocks where most retail investor’s money have been locked up since 2008 and till date have had no real movement.” A business critic, Mr Steve Okojie said.
“These companies constitute about 60 percent of the market in numerical terms,” he added.
Mr Okojie also alleged that the impression of market rebound is the work of brokers and rich men setting up share prices of blue-chip companies to make money for them while baiting small investors to come back.