Nigeria’s financial market performance moved up by one point to number 5th position in 2018 from number 6th position in 2017, according to the 2018 Absa Africa Financial Market index.
BusinessDay analysis of the index report by Absa Group Limited, a South African firm that offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance, showed that Nigeria ranked 6th position out of 20 countries that were analysed in Africa scoring 61 out of 100.
“Improvements in administrative efficiency and tax incentives boost regulatory environment,” authors of the report stated.
The Index assesses countries on six pillars which are market depth; access to foreign exchange; tax and regulatory environment and market transparency; capacity of local investors; macroeconomic opportunity; and enforceability of financial contracts, collateral positions and insolvency frameworks.
Out of the six pillars that were used, Nigeria scored the highest of 94 in Market transparency, tax and regulatory environment, 66 in Market depth, 59 in Macroeconomic opportunity, 53 in Access to foreign exchange, 50 in Capacity of local investors and 42 in Legality and enforceability of standard financial markets master agreements.
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