The Managing Director and Chief Executive Officer of Ava Capital PLC, Kayode Fadahunsi, has said Nigeria’s capital market is on a strong growth trajectory, citing increased listings, banking recapitalisation and rising foreign investor participation as key drivers.
Fadahunsi, who spoke on the Global Business Report, described the performance of the Nigerian Exchange (NGX) as “excellent,” noting that the market had recorded consistent growth over the past three years.
According to him, the NGX had gained about 57.26 per cent year-to-date, while its dollar-denominated return stood at approximately 71.78 per cent, reflecting the recent appreciation of the naira.
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He said the ongoing banking and insurance recapitalisation exercises were also injecting significant capital into the economy and could strengthen lending and economic activity.
Fadahunsi said the banking recapitalisation had brought about N4.65 trillion into the market, while approximately N715 billion had been raised through insurance-sector recapitalisation.
On the proposed listing of Dangote Refinery, he described the potential N65 trillion valuation as a major development for the Nigerian capital market.
He said the listing could account for about 30 per cent of the entire market by the time it is completed, arguing that the transaction would significantly increase market capitalisation and deepen the exchange.
Addressing concerns over the proportion of shares being offered to the public, Fadahunsi said the proposed free float was sufficient to meet current regulatory requirements, noting that the value of the shares on offer significantly exceeded the minimum threshold.
He also highlighted the importance of regulatory efficiency in attracting more companies to the Nigerian capital market. Fadahunsi said the Securities and Exchange Commission and NGX had demonstrated greater collaboration with market operators, making the listing process more efficient.
He disclosed that Ava Capital’s listing process was completed with regulatory approvals secured within days, describing the experience as evidence of an improving business environment.
Fadahunsi further pointed to Nigeria’s inclusion in global investment benchmarks as another positive development, saying the move could attract billions of dollars in additional capital into the country’s equity and bond markets.
He said the inclusion of Nigerian securities in international indices could help address the depth concerns previously raised by global fund managers and provide more investment opportunities for large institutional investors.
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On Nigeria’s ambition to become a $1 trillion economy, Fadahunsi said the target remained achievable if the country sustained its current reform trajectory.
However, he cautioned that the benefits of recent economic reforms had yet to fully reach ordinary Nigerians, pointing to rising unemployment and poverty indicators.
He added that continued policy consistency would remain critical to sustaining growth in the capital market and the broader economy.
