Lagos:An investment expert, Mr. Chukwudi Nga, has emphasized the need for a deeper and broader development of Nigeria’s capital market to effectively support the nation’s goal of reaching a one trillion dollar economy by 2030.
According to the News Agency of Nigeria, Nga, the Managing Director of Morgan Capital Investment Ltd., highlighted the urgency of this call as Nigeria celebrates its 66th independence anniversary, with only four years remaining to achieve its ambitious economic target.
Nga pointed out that while Nigeria has established essential institutions, a regulatory framework, infrastructure, and products for a modern capital market, it still lacks the depth required to fulfill the financing needs of its economy. He stressed the importance of the next phase of development, which involves more quality listings, stronger liquidity, a broader domestic investor base, and greater mobilization of long-term savings into productive investments.
The market has seen significant advancements, such as the
transition to a T+1 settlement cycle effective June 1, aimed at enhancing market efficiency and aligning with international standards. Furthermore, Nigeria’s return to FTSE Russell Frontier Market status in September has improved the market’s attractiveness to investors by advancing foreign exchange liquidity and market accessibility.
Nga argued that these developments are crucial for investor confidence but emphasized the necessity of turning reforms into increased mobilization of long-term capital for businesses and infrastructure. He advocated for more companies to be encouraged to access the market through various financial instruments, including equities and corporate bonds, and for infrastructure projects to leverage bonds and asset-backed securities.
He identified institutional investors, such as pension funds and insurance companies, as key providers of long-term capital to productive sectors and called for government support through tax incentives, expedited approval processes, and policies encoura
ging institutional investments.
Nga also mentioned the ongoing Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals as an example of how large-scale transactions can broaden the market and increase participation opportunities for Nigerians.
He cautioned against measuring the market’s depth solely by market capitalization, advocating for a truly deep market characterized by more quality listings, stronger liquidity, and a wider investor base.
Discussing the economic environment, Nga noted that the recent reduction in the Monetary Policy Rate (MPR) to 23% might influence investors’ portfolio allocations, potentially favoring equities over time. However, he advised investors to prioritize company fundamentals and governance over interest rate expectations.
To attract more Nigerians to the market, Nga called for simplified and safer investment processes and stronger financial education, aiming to integrate investment as a standard component of savings and wealth creation for millions
of Nigerians.
Nga concluded by stressing the importance of scaling the market, attracting quality companies and projects, and channeling long-term capital into productive sectors as Nigeria works towards its one trillion dollar economy objective.