Nigeria Capital Market: Tinubu & Economic Resilience
Nigeria’s capital market is demonstrating impressive resilience, even amid meaningful economic reforms under President Tinubu, according to market expert Olatunde Amolegbe. Rapid, albeit difficult, reforms like naira floatation adn subsidy removals, are credited with shoring up investor confidence and stabilizing government finances, preventing broader economic collapse. The Nigerian Exchange’s All Share Index is up over 40%, and increased foreign investment and capital raising activities signal a positive shift. Still,critical infrastructure gaps and the ongoing cost-of-living crisis remain significant hurdles.The signing of the new Investment and Securities Act is anticipated to transform the capital market, and News Directory 3 is following the changes. Discover what’s next for the Nigerian economy.
Nigeria’s Capital Market Shows Promise amidst Economic Reform
Updated May 29, 2025
Despite economic hardship, Nigeria’s capital market is a radiant spot, according to Olatunde Amolegbe, Managing Director and CEO of Arthur Stevens Asset Management Limited. He assessed President Bola Ahmed Tinubu’s two years in office, noting that swift reforms were crucial to avoid economic collapse.
Amolegbe acknowledged the reforms’ intensity but stressed their necessity. He pointed to the floating of the naira, subsidy removals, and tax reforms as steps boosting investor confidence and stabilizing government finances. Thes policies have positively impacted the equities market.
The Nigerian Exchange’s All Share Index has increased by over 40% under the current management. Foreign portfolio investors are returning, and more companies seek to raise capital. The Central Bank of Nigeria (CBN)’s recapitalization directive for banks also enhances market liquidity and investor interest in equities.
The federal government is actively raising capital in the local fixed-income market to address budget and infrastructure deficits.Nigeria has issued its first U.S. Dollar Domestic Bond and Eurobond in over a decade. President Tinubu’s signing of the new Investment and Securities Act is expected to transform the capital market.
Amolegbe cautioned against complacency, urging focus on challenges affecting production and households. He suggested accelerating privatization and commercialization of underperforming public assets. Reducing operational and finance costs for companies is also vital to boost production and reduce unemployment.
Critical infrastructure gaps, especially power supply and insecurity, require urgent attention. These issues hinder food production, industrial output, and overall economic stability. While the capital market shows strength, Amolegbe recognized the cost-of-living crisis and urged the government to ease the burden on citizens.
What’s next
The government must continue easing the burden on citizens as the benefits of reforms materialize. Addressing infrastructure gaps and reducing operational costs for companies will be critical for sustained growth and stability in Nigeria’s capital market and broader economy.