Financial market experts have called for faster regulatory reforms, improved access to long-term financing for small and medium-sized enterprises (SMEs), and greater adoption of digital innovation to attract investment and drive economic growth in Nigeria.
The experts spoke at the 30th Anniversary Symposium of the Association of Issuing Houses of Nigeria (AIHN) in Lagos, where industry stakeholders reviewed three decades of capital-market development and examined opportunities for deeper investment, innovation and economic transformation.
Experts Seek Stronger Regulatory Framework
Speaking on a panel titled “Three Decades of Catalysing Capital: Lessons from the Past, Opportunities for the Future,” Group Managing Director of Afrinvest West Africa Limited, Dr Ike Chioke, said the pace and quality of regulatory reforms would remain critical to the growth of the Nigerian capital market.
Chioke acknowledged the progress made in transforming the market from largely paper-based transactions to more efficient systems for securities issuance and capital raising.
However, he called for stronger collaboration between regulators and market operators, particularly as technology and financial products continue to evolve.
He also urged policymakers and market participants to focus more attention on helping SMEs formalise their businesses, strengthen corporate governance and become investment-ready.
According to him, incentives should encourage businesses, particularly those in agriculture and local manufacturing, to establish functional boards, sound accounting systems and effective governance structures that would enable them to attract long-term capital.
Chioke said current market conditions provided opportunities for companies to raise substantial funds, noting that medium-sized issuers could explore transactions ranging from N10 billion to N50 billion, while larger companies could access both naira and foreign-currency investment.
He cited transactions involving Dangote Refinery and MTN as examples of Nigerian assets capable of attracting significant capital.
The Afrinvest executive also advised companies to diversify their funding sources by exploring debt, preference shares and other financial instruments rather than relying solely on equity, which could dilute existing ownership.
Regulation Must Keep Pace With Technology
Deputy Managing Director of Udo Udoma & Belo-Osagie, Mrs Ozofu ‘Latunde Ogiemudia, said Nigeria could not afford prolonged gaps between major reforms to its capital-market laws.
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She noted that the Investments and Securities Act 2025 built on previous reforms but said the 18-year gap between the 2007 Act and the 2025 legislation demonstrated the need for a more responsive legislative process.
Ogiemudia said emerging technologies, particularly artificial intelligence, were rapidly transforming financial markets and required regulators to continually update the legal and supervisory framework.
She also urged SMEs seeking capital to establish appropriate corporate structures, maintain audited financial statements and adopt sound governance practices.
Similarly, Managing Director and Chief Executive Officer of FundQuest Financial Services, Mr Abiodun Akinjayeju, identified stronger capital requirements for market operators and the demutualisation of the Nigerian Exchange as significant developments that had strengthened market resilience and corporate governance.
SEC Backs Innovation Through Regulatory Sandboxes
Deputy Director and Head of Securities Offering at the Securities and Exchange Commission (SEC), Mrs Adama Babadoko, said innovation and regulation should not be viewed as competing objectives.
She said the SEC was deploying regulatory sandboxes and technology-driven supervision to enable eligible financial innovations to be tested in a controlled environment while protecting investors and safeguarding market integrity and financial stability.
Babadoko said the approach would allow regulators to better understand emerging technologies and business models while ensuring that innovation within the capital market remained properly supervised.
AIHN Calls for More Inclusive Capital Market
President of the AIHN and Managing Director of Investment Banking at Chapel Hill Denham, Kemi Awodein, said the association’s 30th anniversary provided an opportunity to reflect on the contribution of issuing houses to Nigeria’s economic development.
She highlighted the role of issuing houses in public offerings, rights issues, debt issuances, mergers and acquisitions, and called for a more inclusive and globally competitive capital market.
Awodein said greater access to funding was needed for SMEs, infrastructure projects and emerging sectors to support broader economic development.
In a keynote address delivered on his behalf by Tony Iloka, SEC Director-General, Dr Emomotimi Agama, said the next phase of Nigeria’s capital-market development would be shaped by technology, sustainability and greater regional and global integration.
Agama said emerging areas such as tokenisation, digital assets, open data and artificial intelligence were changing the way securities are issued, traded, settled and supervised.
He stressed that continuous regulatory and institutional adaptation would therefore be essential if Nigeria’s capital market is to remain competitive, attract more investment and play a stronger role in financing economic growth.
