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Nigeria’s capital market is at a critical juncture, with the Nigerian Exchange (NGX) Group proposing a series of reforms to transform it into a robust engine for national development.
Addressing top notch business leaders on Friday in Lagos, at a Strategic engagement, Dr. Umaru Kwairanga, Chairman NGX Group in his paper presentation titled “Repositioning Nigeria’s Capital Market for Sustainable Growth”, outlines the need for structural reforms to attract high-quality listings and deepen market liquidity.
According to Dr. Kwairanga, the capital market’s strength lies in the quality, diversity, and governance standards of its listed companies. To achieve this, the NGX Group is advocating for fiscal incentives, privatization through the stock exchange, and unlocking institutional capital.
The proposed reforms include offering reduced corporate tax rates for newly listed companies, tax deductibility of listing expenses, and reduced transaction charges for primary market issuances.
Additionally, the NGX Group suggests strategic partial listings of viable national assets, such as energy and infrastructure companies, to improve corporate governance standards and attract foreign institutional investors.
The pension industry, which represents one of Africa’s largest pools of long-term capital, is also expected to play a key role. Dr. Kwairanga suggests gradual reforms to increase equity allocation thresholds, structured participation in infrastructure REITs, and incentivized allocation to high-governance growth companies.
To strengthen the growth and innovation ecosystem, the NGX Group Chairman proposes simplifying listing requirements for high-growth companies, introducing flexible share structures, and providing structured pre-IPO advisory support.
Dr. Kwairanga also highlights the need for regulatory efficiency, market making, and securities lending to enhance liquidity. Expanding the derivatives and hedging ecosystem, broadening retail participation, and strengthening investor protection are also key areas of focus.
Dr. Kwairanga emphasizes the importance of aligning the capital market with national development priorities, such as infrastructure expansion, energy transition, and private sector growth. By doing so, the capital market can become a primary financing platform for these initiatives and support Nigeria’s broader economic transformation.
The NGX Group’s vision is to position Nigeria’s capital market as a leading African hub, attracting high-quality companies, mobilizing long-term capital, and driving economic growth.
“The capital market must not merely grow. It must evolve,” Dr. Kwairanga added.
Photo Caption:
Key stakeholders discuss Nigeria’s capital market future.
From right: Dr. Umaru Kwairanga, Chairman NGX Group; Alhaji Aliko Dangote, Chairman Dangote Conglomerate; Ms Omolola Oloworaran, DG PENCOM; Dr. Emomotimi Agama, DG SEC; Mr Femi Otedola, Chairman FirstBank; and Mr Temi Popoola, Group CEO NGX.
