Amid prevailing macroeconomic pressures, Nigeria’s capital market continues to play a key role in investment and economic growth. In this interview with JIDE AJIA, Financial Trust Company Chairman, Niyi Ajayi, speaks on reforms, market performance, integrity, and FTC’s expansion plans across Africa
What is your assessment of NGX’s performance in the present economic environment?
The Nigerian Exchange has shown remarkable resilience despite foreign exchange volatility, inflationary pressures, and tight monetary policy. The NGX continues to post positive momentum, reflecting both the strength of listed companies and growing recognition that Nigerian equities offer long-term value.
The market has matured considerably. Infrastructure is stronger, settlement systems are reliable, and regulatory oversight has improved. The transition to T+1 settlement and ongoing digitalisation efforts will enhance efficiency. However, liquidity remains a challenge, especially among mid- and small-cap stocks, underscoring the need for broader retail and institutional participation.
What factors are boosting investor confidence?
Three factors stand out – corporate earnings resilience, attractive valuations, and growing institutional interest.
Many Nigerian firms, particularly in banking, consumer goods, and industrial sectors, continue to demonstrate profitability despite operating challenges. Nigerian equities also trade below historical and emerging-market averages, creating attractive opportunities for medium- and long-term investors.
In addition, domestic pension funds increasingly view equities as inflation hedges, while foreign investors continue to recognise Nigeria’s long-term growth potential. Ongoing reforms in foreign exchange, fiscal policy, and regulation reinforce confidence that structural challenges are being addressed.
FTC recently celebrated its 50th anniversary. What do you consider the key drivers of
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