…Seek lower interest rates, infrastructure financing, tax incentives to sustain economic gains
By: Goodluck E.Adubazi, Abuja.
The Capital Market Academics of Nigeria (CMAN) has applauded the economic reforms of the Federal Government, saying they have restored investor confidence and propelled the Nigerian capital market to record-breaking performance, even as it warned that the benefits must reach ordinary Nigerians.
Speaking at a Press Conference at the NUJ – FCT Council headquarters in Abuja on Monday, June 29, 2026, the President of CMAN, Prof. Uche Uwaleke, said the Nigerian capital market has emerged as one of the biggest beneficiaries of the ongoing economic reforms, with equities market capitalisation exceeding ₦150 trillion as of June 26, 2026, while year-to-date returns approached 50 per cent, placing the Nigerian Exchange among the world’s best-performing stock markets.
Addressing journalists on the theme, “The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth: Bridging the Gap Between Macroeconomic Stability and Household Prosperity,” Uwaleke described Nigeria’s economy as one marked by improving macroeconomic indicators but persistent hardship for households and businesses.
He commended President Bola Ahmed Tinubu for implementing bold reforms that previous administrations had avoided, including the removal of fuel subsidy, foreign exchange market unification and fiscal reforms aimed at strengthening public finances.
According to him, the reforms have improved transparency in the foreign exchange market, enhanced investor confidence and laid the foundation for sustainable economic growth.
CMAN also praised the Federal Government for the enactment of the Nigerian Tax Acts 2025, describing the legislation as a milestone that would improve revenue generation, simplify tax administration and make Nigeria a more attractive investment destination.
The association equally lauded the Central Bank of Nigeria (CBN) for clearing over $7 billion in inherited foreign exchange obligations, discontinuing Ways and Means financing of the Federal Government and successfully implementing the banking sector recapitalisation programme.
Uwaleke said the CBN’s reforms had restored confidence in Nigeria’s financial system, improved liquidity in the foreign exchange market, strengthened external reserves and enhanced the country’s standing with international investors.
He noted that the positive impact of the reforms is evident in the capital market, where investor confidence has strengthened considerably, foreign portfolio investment has increased and market performance has remained robust.
Despite the positive macroeconomic outlook,CMAN cautioned that economic reforms should not be judged solely by rising stock prices or improved sovereign ratings.
“The true measure of economic reform is whether it improves the welfare of ordinary Nigerians,” Uwaleke said.
CMAN observed that many households and businesses continue to struggle with high living costs, limited access to affordable finance and declining purchasing power despite the improving economic indicators.
The association noted that lending rates remain prohibitively high, limiting access to credit for small and medium-sized enterprises (SMEs), which it described as the backbone of employment generation.
CMAN urged the Central Bank to gradually ease the interest rate environment as inflation moderates, arguing that persistently high borrowing costs discourage investment, business expansion and job creation.
It also advised the apex bank to continue supporting development finance through specialised development finance institutions to boost agriculture, manufacturing, housing, exports and small businesses.
While acknowledging Nigeria’s 3.89 per cent GDP growth in the first quarter of 2026, CMAN said the economy still requires stronger growth driven by agriculture, manufacturing and other productive sectors capable of creating jobs and reducing poverty.
The body also expressed concern over the composition of capital inflows, noting that more than 95 per cent of the over $10 billion capital imported in the first quarter of 2026 consisted of short-term foreign portfolio investments.
It urged the Federal Government to intensify efforts to attract more Foreign Direct Investment (FDI) through improved security, policy consistency, contract enforcement and a more business-friendly environment.
CMAN further warned that Nigeria’s public debt, which exceeded ₦159 trillion at the end of 2025, underscores the need for sustainable financing strategies.
It recommended greater use of the capital market to finance infrastructure through project-specific instruments such as Sukuk Bonds, Green Bonds and other thematic securities, rather than relying predominantly on conventional government bonds.
The association also encouraged state governments to raise long-term infrastructure funding through the capital market instead of depending on short-term commercial bank loans.
To deepen the market, CMAN proposed tax incentives for companies seeking to list on the Nigerian Exchange, including reducing Company Income Tax for listed firms from 30 per cent to 25 per cent to encourage public listings and improve corporate governance.
The group commended the Securities and Exchange Commission (SEC) and the Nigerian Exchange Group (NGX Group) for reforms including the migration to the T+1 settlement cycle, extended trading hours and technological innovations aimed at improving market efficiency.
It also called for greater adoption of financial technology, sustainable finance instruments, green bonds and ESG-compliant investment products to enhance Nigeria’s competitiveness and attract long-term investment.
CMAN advocated stronger collaboration between regulators, policymakers and academia to ensure that research informs policy decisions and welcomed plans by the SEC to unveil a new Capital Market Master Plan.
The association also hailed the enactment of the Investments and Securities Act 2025, describing it as a landmark law that strengthens investor protection, enhances regulatory oversight and modernises Nigeria’s capital market framework.
Concluding, Uwaleke said the reforms undertaken by the government were beginning to yield measurable macroeconomic results, but stressed that their ultimate success would depend on improvements in the welfare of citizens.
He maintained that the Nigerian capital market remains a critical vehicle for mobilising long-term investment, financing infrastructure, supporting entrepreneurship and driving inclusive economic growth.
“Our collective challenge is to ensure that macroeconomic stability evolves into inclusive prosperity,” he said, reaffirming CMAN’s commitment to promoting evidence-based policy advocacy and stronger collaboration between academia, government and industry to support Nigeria’s economic transformation.
CMAN Planning Committee members Dr. Sterling Ehis and Dr. Hussein Muhammed, CMAN Second Vice President, contributing at the press conference, called on Nigeria to unite and present a common front to improve the country’s access to the global financial market.
