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Experts call for faster regulatory reforms, digital innovation and wider access to long-term capital to deepen Nigeria’s capital market.
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Afrinvest’s Ike Chioke urges incentives to help SMEs formalise, strengthen governance and access funding of ₦10bn-₦50bn.
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SEC says regulatory sandboxes and technology-driven supervision will support innovation while protecting investors and maintaining market integrity.
October 7, (THEWILL) – Nigeria’s capital market must accelerate regulatory reforms, expand access to long-term financing for small and medium-sized enterprises and embrace digital innovation to attract more investment and support economic growth, financial market experts have said.
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.
Regulatory Reforms, SME Financing
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 market’s development.
Chioke acknowledged the progress made in moving Nigeria from paper-based transactions to more efficient issuance and capital-raising processes, but called for stronger collaboration between regulators and market operators as technology and financial products evolve.
He said greater attention was needed to help 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 proper boards, accounting systems and governance structures that would enable them to access long-term capital.
Chioke also said current market conditions offered companies an opportunity to raise funds, noting that medium-sized issuers could explore transactions in the N10 billion to N50 billion range, while larger businesses could tap both naira and foreign-currency investment.
He cited transactions involving Dangote Refinery and MTN as evidence of the ability of Nigerian assets to attract substantial capital.
The Afrinvest chief also urged companies to diversify their funding structures through debt, preference shares and other instruments rather than relying exclusively on equity, which could dilute 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 capital-market legislative reforms.
She noted that the Investments and Securities Act 2025 built on earlier reforms but pointed to the 18-year gap between the 2007 Act and the 2025 legislation as evidence of the need for faster legislative responses.
Ogiemudia said artificial intelligence and other technologies were changing financial markets rapidly, requiring regulation to evolve alongside innovation. She also urged SMEs to establish proper corporate structures, maintain audited accounts and adopt good governance before seeking capital.
Managing Director/CEO of FundQuest Financial Services, Mr Abiodun Akinjayeju, identified stronger capital requirements for market operators and the demutualisation of the Nigerian Exchange as important developments that had improved market resilience and corporate governance.
Meanwhile, SEC Deputy Director and Head of Securities Offering, Mrs Adama Babadoko, said innovation and regulation should not be treated as opposing forces.
She said the SEC was deploying regulatory sandboxes and technology-driven supervision to allow eligible innovations to be tested while maintaining investor protection, market integrity and financial stability.
AIHN Seeks More Inclusive Market
AIHN President and Managing Director, Investment Banking, Chapel Hill Denham, Kemi Awodein, said the association’s 30th anniversary provided an opportunity to reflect on the contribution of issuing houses through public offerings, rights issues, debt issuances, mergers and acquisitions.
She called for a more inclusive and globally competitive market with greater funding access for SMEs, infrastructure and emerging sectors.
In a keynote delivered on his behalf by Tony Iloka, SEC Director-General, Dr Emomotimi Agama, said the next phase of capital-market development would be driven by technology, sustainability and greater regional and global integration.
Agama said emerging areas including tokenisation, digital assets, open data and artificial intelligence were reshaping how securities are issued, traded, settled and supervised, making continuous adaptation essential to the market’s future.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
