Investment banking is a specific banking sector traditionally associated with the issuance, purchase, and sale of shares and bonds of companies, government agencies, and organizations. Investment banking also includes the provision of services such as brokerage operations, financial engineering (development of new financial instruments and operational schemes). Besides, it also provides mergers and acquisitions of companies. The traditional and still very important function of Nigerian investment banks is the issuance of new securities (shares and bonds) for enterprises as well as for government agencies and organizations. The investment bank earns money on such transactions by buying out the entire issue of securities from the issuer and selling them to investors at a higher price. Nigerian firms and government departments sell bonds to borrow funds from investors. They often need money to finance major projects, such as oil and gas industry, building roads, new factories and plants or development of agriculture and other infrastructures. It’s very important for Nigeria today. Also, government agencies may simply face a lack of tax revenue relative to planned incomes. Besides, firms often require additional funds to purchase other companies. A bond is an obligation to pay a certain amount of money at a specified time in the future. For example, a company can sell bonds at a value of $100, pledging to pay out $105 a year later. It means that it takes 100 dollars for one year at 5% per annum. Another way to raise funds is to sell shares, which, in essence, represent the firm's obligation to pay the buyer a portion of its profits.
President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, has commended the leadership of Nigerian Exchange Group (NGX Group) for transforming Nigeria’s capital market.
The Nigerian Exchange Limited and Stanbic IBTC have called for greater participation in market making and securities lending to deepen liquidity,
Nigerian Exchange Limited (NGX) has reinforced its role as a catalyst for capital
The Federal Government of Nigeria has listed a N368.3bn bond along with N234bn in supplementary bond issues on the Nigerian Exchange Limited.
Nigerian Exchange Limited (NGX) has recorded its first Commercial Paper (CP)
As part of its acquisition of CHI Limited from Coca-Cola, makers of popular....