ASHON Chairman: Inconsistent Policy Pose Biggest Challenges to Nigerian Capital Market  

In this definitive interview, the Chairman of the Association of Securities Dealing Houses of Nigeria, Sehinde Adenagbe, speaks on challenges facing Nigerian capital market and offers in-depth assessment of the market’s current state, the drivers behind the NGX’s historic gains, and the reforms shaping its future. Kayode Tokede presents the extracts 

Congratulations on your election as the Chairman of Association of Securities Dealing Houses of Nigeria (ASHON). What is your general assessment of the current capital market environment?

Thank you. My election represents a call to service. Despite short-term volatility, the market has remained resilient, with improving liquidity, modest growth in listed-company earnings, and steady participation from domestic and foreign investors.

What are the biggest challenges confronting the Nigerian market today?

Key challenges include inconsistent policy signals, macroeconomic instability, low financial literacy, and gaps in technology infrastructure. Together, these factors dampen investor confidence and limit the market’s ability to attract long-term capital.

How did the Nigerian Exchange Limited (NGX) perform in 2025?

In 2025, the Nigerian Exchange (NGX) delivered exceptionally strong performance, ending the year among the world’s best-performing emerging and frontier markets. The NGX All-Share Index (ASI) surged 51.19per cent year-to-date, closing at an all-time high of 155,613.03 basis points, its strongest annual return in nearly two decades.  This rally was driven by broad investor confidence, macroeconomic stability and structural market reforms that boosted liquidity and valuations. Total market capitalisation expanded to roughly N99.38 trillion, up sharply from the start of the year, underlining robust capital gains for investors.  Throughout the year, key sectors such as consumer goods, insurance, industrials and banking delivered significant returns, contributing to the overall bullish sentiment and strong index performance.  

How does your association plan to address low investor confidence?

We will strengthen ethical standards, improve disclosure practices, and collaborate with regulators on investor-protection initiatives. A nationwide investor-education programme is also planned to rebuild trust and deepen participation.

What reforms are you advocating to enhance market development?

Reforms will enhance more transparency. We need more clarity on the issue of capital gain tax (CGT) which dragged the market down by about N4.8 trillion in a single market day. We support stricter compliance reviews, faster reporting timelines, and unified digital reporting platforms to reduce information gaps. The Investment and Securities Act (ISA) 2025 is a landmark reform. It expands the definition of securities, strengthens investor protection, and brings new products, including digital assets, under regulation. ISA 2025 also enhances the SEC’s oversight powers and has contributed to Nigeria’s removal from the FATF grey list in October 2025, supporting smoother international transactions. Stable FX reforms and exchange-rate unification have improved pricing predictability for foreign investors, supporting increased capital inflows. Going forward, policies are needed to encourage new listings, long-term institutional investment, market infrastructure improvements, and security measures to create a safe investment environment. 

How will technology and innovation feature in your agenda?

Technology is central to our agenda. We will champion modernised trading infrastructure, support fintech partnerships, and promote the responsible use of AI in risk management and market surveillance. These measures will improve efficiency, reduce errors, and enhance the trading experience.

Many investors complain about slow dispute resolution. What is your plan?

We will work with regulators to strengthen the dispute-resolution framework, establish faster mediation channels, clarify escalation procedures, and ensure investors receive prompt and fair hearings.

How do you plan to deepen retail investor participation?

We will launch targeted financial-literacy campaigns, simplify investment products, and use digital platforms to make investing more accessible to younger demographics. Partnerships with schools and universities will introduce capital-market education early. We shall make the market more investor-friendly by simplifying our onboarding process. Also to work with the CSCS in order to reduce time taken for new accounts to be active. We shall work with the press to ensure professional reportage of the market, 

What is your stance on the current regulatory environment?

Regulation is essential for market stability, and we acknowledge progress made by regulators. We advocate for more collaborative policy making, especially regarding broker operations, cross-boarder transactions and incentives for capital. 

How will you support member firms during this period of change?

We will provide capacity-building programmes, professional training, compliance support, and access to modern trading tools. We will also engage government authorities to help firms access incentives and funding to strengthen their capital base.

What role will foreign investors play in the near term?

Foreign investors remain crucial for liquidity and market depth. We are working to ensure Nigeria’s investment climate aligns with global best practices, particularly in governance, transparency, macroeconomic stability, and ease of capital repatriation. The introduction of T+2 settlement cycle will further endear the market to investors. 

How will you ensure stronger collaboration across the capital-market ecosystem?

We will create a structured engagement framework involving regulators, listed companies, investment banks, registrars, and custodians. Coordination will accelerate reforms, improve investor experience, and strengthen market efficiency.

How can the SEC handle recapitalisation of stockbroking firms effectively?

Recapitalisation is essential but must be practical. A phased or tiered approach allows firms of different sizes to meet new capital requirements gradually. The Securities and Exchange Commission (SEC) to give a considerable cool- off period for the exercise to go through. 

Clear timelines, transparent guidelines, flexible compliance windows, and incentives such as reduced fees, low-interest financing, and support for mergers can ease the process. Continuous stakeholder engagement is vital to ensure recapitalisation strengthens the industry without stifling growth.

What message would you like to leave with investors at the start of your tenure?

Investors should be confident in Nigeria’s capital market. Since May 2023, the NGX All-Share Index has risen about 136%, and market capitalisation has expanded significantly, reflecting renewed confidence. Reforms such as ISA 2025, FX market improvements, and exchange-rate unification have strengthened market integrity, broadened product offerings, and improved investor protection. Removal from the FATF grey list supports smoother international transactions. While progress is evident, more work lies ahead. Policies encouraging new listings, long-term institutional investment, improved infrastructure, and enhanced security will be critical. Our association is committed to safeguarding investor interests, enhancing transparency, and driving reforms to make the capital market more competitive, inclusive, and resilient.