Tinubu’s Nasdaq Bell: What Does it Mean and How Does It Affect Nigerians?
On Wednesday, September 20, 2023, President Bola Tinubu rang the closing bell at the National Association of Securities Dealers Automated Quotations (Nasdaq), hours after he addressed the United Nations General Assembly (UNGA), his first such address since being elected as President of Nigeria.
However, controversies have trailed President Tinubu’s Nasdaq bell after his spokesperson and Special Adviser Ajuri Ngelale, erroneously announced that Tinubu is the first African President to ring the bell.
“In honor of President Bola Tinubu’s determined global push to aggressively attract foreign direct investment into Nigeria, the world’s second-largest stock exchange, the National Association of Securities Dealers Automatic Quotation System (Nasdaq), on Wednesday in the world’s financial capital, invited President Tinubu to ring the closing bell, making him the first Nigerian President to ever receive the honor,” he said.
While Tinubu is not the first African President to ring Nasdaq’s closing bell, as Jakaya Kikwete, former President of Tanzania rang the bell in 2011, Tinubu is not the first Nigerian or the first president of the country to ring the ceremonial opening or closing bell in major stock exchanges.
In 2013, former President Goodluck Jonathan rang the closing bell of the New York Stock Exchange (NYSE), the largest stock exchange in the world by market capitalization.
What does ringing the opening or closing bell at a stock exchange mean?
A stock exchange is a centralized and regulated financial marketplace where securities, such as stocks, bonds, commodities, and derivatives, are bought and sold by investors.
Headquartered in Lagos, Nigeria’s economic hub, The Nigerian Stock Exchange (NGX) is the largest and most prominent stock exchange in Nigeria. In 2022, NGX ended half of the year as the best-performing stock in the world. NYSE, Nsadaq, Shanghai Stock Exchange, China, Euronext, Europe, and Japan Exchange Group are the five largest Stock Exchanges in the world by market capitalization as of July 2023.
Ringing the opening bell or closing bell at Nasdaq, or any major stock exchange, is a symbolic tradition that marks the beginning and end of the trading day.
For Nasdaq, the ringing of the opening bell occurs at the start of the trading day, typically at 9:30 AM Eastern Time (ET), which is around 2:30 PM in Nigeria. It signals the official commencement of trading activities for the day. Before the opening bell, there is often a brief ceremony where dignitaries, company representatives, or special guests are invited to ring the bell.
A similar ceremony is observed during the end of the trading day, which is at 4:00 PM ET.
These bell-ringing ceremonies are mostly ceremonial and symbolic in nature. They serve as a tradition that dates back many years and are used as a way to celebrate milestones, special occasions, or notable events within the financial markets.
For the Nigerian government, the ringing of the bell was to “boldly advance Tinubu’s foreign investment push.”
There has been worrying concern over the reduction of Foreign Investment in Nigeria. Between 2019 and 2021, Nigeria’s total Foreign Direct Investment (FDI) fell from $2.3 billion to $698 million.
“It’s a great honor for me to be here. I am happy to bring Nigeria to your doorsteps, and I am honored that we are here today with a bubbling Nigerian stock market that will evolve in the West African sub-region. The greatest economy in Africa is Nigeria, there is immense opportunity in Nigeria where you can invest your money without fear,” Tinubu said.
