Experts Outline Strategies To Unlock Capital Market’s Potential
2 years ago 3 min read
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In a bid to revitalize Nigeria’s capital market and engage younger demographics, experts have outlined key strategies centered on technological innovation, economic diversification, and regulatory reform.
Speaking at a forum, Dr. Akeem Oyewale, CEO of Marble Capital Limited, and Mr. Olatunde Amolegbe, Managing Director of Arthur Stephens Management Limited, shared insights on unlocking the sector’s potential.
Oyewale, in his paper titled “Leveraging Modern Technology To Attract Youths To The Capital Market”, emphasized the importance of diversifying the economy by boosting non-oil sectors such as manufacturing, agriculture, technology, and services.
He called for increased support for small and medium enterprises (SMEs) and investments in value-added industries to enhance economic resilience.
“The capital market should be strengthened to improve funding for businesses, attract foreign investment, promote financial inclusion, and create diverse investment opportunities,” he said.
Oyewale also advocated for infrastructure development, urging investments in energy, transport, and urban infrastructure to boost connectivity, reduce costs, and drive industrial growth.
He highlighted the need to accelerate the digital economy by supporting tech startups and leveraging advanced technologies like artificial intelligence and blockchain for innovation.
Further, he underscored the importance of prioritizing education and healthcare, improving governance, reducing corruption, and fostering a conducive business environment to promote financial inclusion and regional trade.
Complementing these ideas, Amolegbe, in his presentation titled “Unlocking the Potential of the Nigerian Capital Market: Challenges and Opportunities”, highlighted the capital market’s pivotal role in economic growth.
He noted that the market serves as a platform for mobilizing capital, facilitating investments, and fostering wealth creation.
Amolegbe detailed the Nigerian capital market’s performance in 2024, reporting a 31.34 per cent growth in the NGX All-Share Index (NGX-ASI), which rose from 74,773.77 on December 29, 2023, to 98,207 by December 10, 2024.
This growth was driven by robust earnings from blue-chip companies and favorable government policies.
The NGX market capitalization also expanded from N40.9tn in January 2024 to N59.3trn by year-end, bolstered by new listings such as Transcorp Power Plc, which added N1.8tn to the market.
However, the second and third quarters saw modest corrections, with declines of 4.31 per cent and 1.50 per cent respectively, attributed to high inflation, currency devaluation, and the introduction of a windfall tax that impacted specific sectors, particularly banking.
Amolegbe highlighted notable global market trends, with the S&P 500 Index gaining 27.58 per cent year-to-date (YTD) and the NASDAQ Composite achieving a 34.3 per cent YTD gain, driven by a resurgence in technology and artificial intelligence.
Comparatively, the NGX Insurance Index outperformed local peers with a remarkable 67.3 per cent YTD growth, benefiting from repriced premium rates and naira devaluation.
The FMDQ Debt Market also grew to N78.97trn by December 2024, reflecting a robust appetite for debt instruments.
Both experts called for policy reforms to sustain the sector’s momentum. Oyewale’s focus on leveraging technology and economic diversification aligns with Amolegbe’s emphasis on addressing regulatory and macroeconomic challenges.
