By Peter Egwuatu

Despite prevailing global economic uncertainties, the Nigerian capital market has continued to demonstrate strong resilience and steady growth, driven by rising investor confidence, improved regulatory transparency, and increasing domestic participation, says Mr. Sehinde
Adenagbe, Chairman, Association of Stockbroking Houses of Nigeria, ASHON
Speaking to Vanguard, in an interview, Adenagbe said: “
The Nigerian capital market has shown remarkable resilience and growth despite global economic uncertainties. The Nigerian Exchange Limited (NGX) has continued to attract positive attention from international rating agencies, reflecting growing confidence in the market’s structure, transparency, and regulatory framework. We are also witnessing stronger domestic participation, which is a healthy sign for market stability and long-term growth.”
On the factors that are driving the renewed participation of local investors in the market, he said: “Several factors are responsible for the increasing participation of indigenous investors. First, is improved awareness about investment opportunities in the capital market. Second, the search for better returns amid inflation has pushed many Nigerians toward equities and other financial instruments. In addition, advances in digital trading platforms have made investing more accessible, especially for younger investors.Another attraction is the fast and easy convertibility of market instruments to cash as opposed to other markets.”
When asked his outlook for the market in the new quarter, he said : “ The outlook remains cautiously optimistic. We expect continued investor interest, especially as companies release audited financial statements and dividend declarations. Sectors such as banking, telecommunications, consumer goods, and energy are likely to remain attractive. However, investors will continue to monitor macroeconomic indicators such as inflation, interest rates, exchange rate stability, and government policy direction.”
On why banking stocks are receiving significant attention from stockbrokers and analysts this season, he said: “ Banks remain critical drivers of market capitalization and liquidity on the NGX. With the release of audited financial statements, investors are carefully examining the quality of earnings, asset strength, loan performance, and capital adequacy of banks. The ongoing recapitalization discussions and regulatory reforms are also making the sector particularly important to market participants. Investors are also watching closely the implications of the new directive to banks on dividend payment by the Central Bank of Nigeria (CBN) .The shareholders will be more rewarded at the long run as the banks’ balance sheets become healthier, bigger and stronger.”
Continuing, Adenagbe said,: “ Share prices are influenced by several factors. These include corporate earnings performance, dividend history, macroeconomic conditions, inflation trends, interest rates, exchange rate movements, investor sentiment, timely financial communication, government policies and political dictates. Demand and supply dynamics in the market also play a significant role. Ultimately, companies with strong fundamentals and good corporate governance tend to attract sustained investor confidence.”
When asked on his advice to investors during this earnings season, he said: “Investors should avoid speculative decisions and focus on informed investing. This is the time to review portfolio allocations carefully, study company fundamentals, and seek professional investment advice from certified stockbrokers where necessary. Diversification remains very important, especially in a volatile economic environment. Investors should also pay attention to long-term value rather than short-term market movements. Set your investment goals and priorities and do not be greedy trying to always expect the best of the market.”
Commenting on investor education in the growth of the capital market, he said : “ Investor education is quite important. A well-informed investor base contributes to market stability, confidence and eventual growth of the market. ASHON, Chartered Institute of Stockbrokers (CIS) SEC, NGX Academy and many other institutions are in the vanguard of making more Nigerians understand the working of the capital market in order to enjoy the opportunities available within it. ASHON and others stakeholders are really committed to improving financial literacy through seminars, digital campaigns, market outreach, and collaboration with educational institutions.”
Continuing he added that : “The capital market offers young Nigerians a legitimate and sustainable path to wealth creation. Through disciplined investing in equities, mutual funds, exchange-traded funds, and bonds, youths can build long-term financial security. Beyond investing, the market also creates career opportunities in finance, technology, research, compliance, and investment advisory services. The capital market is reshaping the lives of the young Nigerians by discouraging them from investing in Ponzi schemes.”
While commenting on how financial products such as blockchain-based assets are gaining attention globally and how Nigeria should respond to it, the ASHON boss, said : “ Innovation is inevitable in global finance, and Nigeria must position itself strategically. Blockchain technology presents opportunities for transparency, efficiency, and financial inclusion. However, innovation must be supported by strong regulation, investor protection, and market education. The objective should be to encourage responsible innovation while minimizing systemic risks and fraudulent activities. The Investment and Securities Act, ISA Act 2025 gives due recognition to virtual assets and digital tokens as securities under which blockchain-based asset stands. There is strict regulation by the Securities and Exchange Commission, SEC to oversee the management of this product in order to forestall any violation.”
When asked whether he believes foreign investor confidence in Nigeria is improving , he said: “Yes, there are encouraging signs of improving confidence. Positive assessments by international agencies and reforms within the financial markets are helping to strengthen Nigeria’s investment image.

Recently Nigeria was upgraded to Frontier Market Status on FTSE Russell. This is an affirmation that confidence is being restored to the Nigerian capital market. However, sustained confidence will depend on macroeconomic stability, policy consistency, foreign exchange liquidity, and the ease of doing business.”
Continuing, he said: “ Some of the key challenges include inflationary pressures, exchange rate volatility, global economic uncertainty, and high interest rates. Geopolitical developments and fluctuations in crude oil prices could also affect investor sentiment especially with the on-going war between the U S and Iran. Nevertheless, the Nigerian market has demonstrated resilience, and we expect prudent policy measures to support stability.”
On what should stakeholders do to deepen the Nigerian capital market further, he said : “Market deepening requires collaboration among regulators, operators, government institutions, and investors. We need stronger investor education, more innovative products, improved technology infrastructure, and policies that encourage listings by both public and private companies. Increased retail participation, especially among youths and women, will also be critical to broadening the market and enhancing liquidity. Political tension among political gladiators must be avoided at all cost.”