The ICT sector of the Nigerian Stock Exchange, NSE, contributed just 1.08 percent to Market Capitalization. This is very infinitesimal especially as we know that ICT is a very important part of the growth of a Nation. United States, China, South Korea and other developed countries are what they are today as a result of the development of its ICT sector.
The Financial service sector is leading on the Market Capitalization with 84 percent this week. While the consumer service and the conglomerate sectors have 5 percent and 3 percent respectively. The remaining 8 percentage is for other sectors. On which the ICT sector only contributed 1.08 percent.
Though, the Federal Government is providing enabling environment for the growth of the ICT sector, there are need for more ICT companies in Nigeria to be listed in the Exchange. Doing so, will add more value to the market capitalization as well as the All Share Index, ASI. In 2016, the Vice President of Nigeria said the sector will be contributing between 25 and 30 percent to the Gross Domestic Product, GDP.
Top well know ICT companies especially in the telecommunications subsector have big companies that contributing huge amount to the GDP and to government revenue. MTN, Glo, Airtel and 9Mobile, the former Etisalat, has invested huge amount of money running into trillions of Naira. But this figure is not yet reflected in the Market Capitalization, simply because they are not yet in the capital market.
To be listed in the flour of NSE, a company must be a Public Liability Company and must have traded in Nigeria for more than ten years. Very few or probably one of the telecom companies have reached 10 years in Nigeria. Probably an exemption should be made for this sector so that they can be listed in the Exchange.
Will arrived at the 1.07 percent Market Capitalization for the ICT sector. Using, August 30, 2017 market price available at the Exchange website for the ICT sector, I computed the following market value for each of the companies in the ICT sector.
CHARMS PLC, N1.17 billions; COURTVILLE, N1.78 billions; CWG, N16.2 billions, ETRANZACT, N105 billions; NCR, N0.58 billions, OMATEK, N7.35 billion and TRIPPLEG, N0.59 billions. The Market Capitalization for the ICT sector sum up to become N131.84 billion. The total Market Capitalization is N12,237.48 trillion. From this, I arrived at 1.08 percent share of the ICT sector to the Market Capitalization.