Performance Of NGSE All-Share Index In 20 Years Of Nigeria’s Democracy
The year 2019 is a very critical year for the Nigerian economy, for it marks 20 uninterrupted years of democracy governance.
Besides that, it is another year of general elections that will usher in a new crop of leadership, just some already in office would likely obtain fresh mandates to continue in office and participate in the direction of the country over the next four years.
For the Nigerian Stock Exchange (NSE) and indeed the economic front, it has been a long sustained tale of oscillating trends for most of the two decades as reflected in the economic policy articulation of the various political dispensations since 1999. It has also been a story of pre and post-election activities that shaped performance of the economy and the market, as investors and traders match promise against what the successive administrations were able to deliver in each electoral cycle.
Research has shown that Nigeria’s economic growth and stock market performance remains a function of movements in crude oil prices at the international market, as well as monetary and fiscal policy directions over the years.
Reasons for this are not far fetched, given that Nigeria has remained a mono-product economy as it has remained dependent on crude oil revenue for it’s the lion’s share of its revenue, despite several years of sloganeering economic diversification from oil mouthed by successive administrations.
Also, since the economy cannot be divorced from actions and inactions of government, the market continues to feed on the “body-language” of government in terms of fiscal policy.
Equity performance for these periods are evident in the socio-economic and political issues that may impact the market, considering the level of the nation politics, economy, market, sector, industry, company and market reaction which is sentiment.
The opening table, as well as the chart below shows the trend of market performance for over two decades.
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