Capital market resilient as ISA 2025, FX reforms drive NGX rally

By Peter Egwuatu

The Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Sehinde Adenagbe, has said that Nigeria’s capital market remains resilient despite economic headwinds, citing strong market performance, regulatory reforms and improving investor confidence.

Speaking after his election, Adenagbe said the Nigerian Exchange Limited (NGX) recorded one of its strongest performances in decades in 2025, driven by macroeconomic stability and structural reforms.

According to him, the NGX All-Share Index (ASI) rose by 51.19 per cent year-to-date to close at a record 155,613.03 points, placing the Nigerian market among the world’s best-performing emerging and frontier markets.

He said total market capitalisation expanded to about ₦99.38 trillion, reflecting strong capital gains for investors, while key sectors including banking, industrials, consumer goods and insurance posted significant returns.

Despite the gains, Adenagbe identified macroeconomic instability, low financial literacy, inconsistent policy signals and technology gaps as major challenges confronting the market. He noted that these factors continue to weigh on long-term capital inflows and investor confidence.

To address these issues, he said ASHON would strengthen ethical standards among dealing firms, improve disclosure practices and collaborate with regulators on investor-protection initiatives. He added that a nationwide investor-education programme would be launched to deepen participation and rebuild trust.

Adenagbe described the Investment and Securities Act (ISA) 2025 as a landmark reform, noting that it expands the definition of securities, strengthens investor protection and brings new products, including digital assets, under regulatory oversight. He said the law also enhances the powers of the Securities and Exchange Commission (SEC) and contributed to Nigeria’s removal from the Financial Action Task Force (FATF) grey list in October 2025, easing international transactions.

He added that foreign exchange reforms and exchange-rate unification have improved pricing predictability for foreign investors, supporting increased capital inflows, while the introduction of a T+2 settlement cycle would further enhance market attractiveness.

On regulation, Adenagbe called for greater collaboration between market operators and regulators, particularly on issues affecting broker operations, cross-border transactions and capital incentives. He also urged clarity on capital gains tax, noting that uncertainty over the policy had previously wiped about N4.8 trillion off market value in a single trading day.

Addressing the recapitalisation of stockbroking firms, Adenagbe said the process was necessary but should be implemented through a phased or tiered approach. He called on the SEC to provide clear timelines, flexible compliance windows and incentives to prevent disruption to the industry.

He said technology would be central to ASHON’s agenda, with plans to support modern trading infrastructure, fintech partnerships and the responsible use of artificial intelligence in risk management and market surveillance.

Adenagbe assured that the association would support member firms through capacity-building programmes, professional training and access to modern trading tools, while engaging government authorities to improve access to funding.

He also pledged to work with regulators to improve dispute-resolution mechanisms and reduce delays in investor complaints, as well as simplify onboarding processes to attract more retail investors, particularly young people.

“In spite of the challenges, investors should remain confident in Nigeria’s capital market,” Adenagbe said, noting that the NGX ASI has risen by about 136 per cent since May 2023.

He said ASHON would focus on transparency, investor protection and reforms aimed at making the market more competitive, inclusive and resilient.

The post Capital market resilient as ISA 2025, FX reforms drive NGX rally appeared first o Vanguard News.