National Wire About Nigerians, Nigerian Business and Other Stories
The Nigerian capital market is expected to experience moderate growth in 2025, driven by government economic reforms, improved macroeconomic conditions, and increased foreign portfolio investment inflows.
Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Assets Limited made this remark last Tuesday, at the 2024 SEC journalists Academy, in Lagos.
According to Amolegbe, whose virtual presentation centres on “Unlocking the Potential of the Nigerian Capital Market: Challenges and Opportunities”, further explained that several opportunities are expected to emerge in 2025, including enhanced foreign portfolio investments, the introduction of a dedicated SME board on the NGX, and the rollout of derivatives such as futures and options.
Additionally, initiatives under the West African Capital Markets Integration (WACMI) program and opportunities from the African Continental Free Trade Agreement (AfCFTA) are expected to enhance cross-border investment flows.
The Nigerian government’s leadership in green finance is also expected to grow, with more green and sustainability-linked instruments expected to be listed on the NGX Impact Board.
Furthermore, the government and corporate bond issuances will improve liquidity in the fixed-income market, while retail investors will benefit from innovative products like fractional bonds.
The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, had emphasized the crucial role of a vibrant capital market in achieving Nigeria’s $1 trillion economy target.
According to him, a thriving capital market is essential for driving economic transformation and prosperity.
Agama highlighted the challenges facing the capital market, including limited investor participation, regulatory bottlenecks, and macroeconomic uncertainties.
However, he noted that the capital market has already demonstrated its potential in financing critical national projects, such as infrastructure development, through innovative instruments like sovereign bonds and Sukuk.
To achieve the $1 trillion economy target, Agama stressed the need for collective effort from policymakers, businesses, and journalists to create an enabling environment, leverage market opportunities, and communicate the market’s value to the broader public.
To unlock the full potential of the Nigerian capital market, Amolegbe recommends increased collaboration amongst market regulators and participants, streamlining the foreign exchange process, and enforcing regulations with fairness.
He also emphasizes the need for activating the proposed National Insurance Investment Guarantee Scheme and working to get the National Savings Scheme off the ground.
Overall, Amolegbe’s projections and recommendations provide a roadmap for the Nigerian capital market’s growth and development in 2025.
Photo Caption:
From left; Head, Information Technology, Securities and Exchange Commission (SEC) Lagos Zonal Office; Mr David Egbunu, Chairman, Capital Market Correspondents Association of Nigeria (CAMCAN), Mrs Chinyere Joel-Nwokeoma, Head Lagos Zonal Office, SEC, Mr John Briggs, CEO, Marble Capital Ltd; Dr. Akeem Oyewale, and , Head External Relations Department, SEC; Mrs Efe Ebelo, during 2024 SEC journalists Academy, in Lagos.
Theme: The role of the capital market in driving Nigeria’s $1 trillion economy
