By Taiye Olayemi
Mr Aruna Kebira, Managing Director of Globalview Capital Ltd., says the administration of President Bola Tinubu has positively impacted on the Nigerian capital market.
Kebira, in an interview with the News Agency of Nigeria (NAN), on Saturday, said several reforms under the current administration had increased investor confidence and encouraged strong market performance in spite of prevailing economic challenges.
He noted that the Nigerian capital market had recorded impressive gains, with benchmark indices, appreciating by over 100 per cent within the last two years.
According to him, the Nigerian Exchange’s All-Share Index (ASI) rose by more than 40 per cent, while the total market capitalisation of listed equities increased by 138 per cent during the period.
“These numbers point to a strong bullish trend in the market, underpinned by reforms implemented by the Tinubu administration,” he said.
He attributed the improved investor sentiment to key economic policy decisions, including the floating of the naira and the removal of fuel subsidies.
Kebira explained that while these measures led to short-term pain for citizens, they were regarded as necessary steps toward restoring macroeconomic stability and attracting investment.
“The reforms have not only restored confidence but also encouraged the return of foreign portfolio investors to the market,” he said.
Kebira further noted that the Central Bank of Nigeria’s (CBN) recent recapitalisation directive for banks deepened the stock market and strengthened the banking sector.
He said that government bond issuances, including the first US Dollar Domestic Bond and Eurobond in over a decade, had also contributed to market depth and helped bridge infrastructural and budget deficits.
He also lauded the enactment of the Investment and Securities Act (ISA) 2025, which he said is expected to further deepen the market through diversified assets, enhanced regulation, investor protection, and support for digital and commodity markets.
“The new ISA empowers sub-national governments to raise funds from the capital market, which is a significant milestone,” he said.
According to Kebira, Tinubu’s inaugural speech and immediate policy pronouncements triggered an early rally, with the stock market recording its best single-day performance in over two years, following his swearing-in.
However, he acknowledged that the broader economy continues to face significant challenges.
He cited rising inflation, currency volatility, and increased operating costs as major issues affecting businesses and citizens.
“While the capital market has benefited from these reforms, they have come at a steep cost to the average Nigerian, with high prices in fuel, electricity, transportation, and food,” he said.
He also pointed out that some businesses, particularly small and medium-sized enterprises (SMEs), have shut down or exited the market due to high operating costs resulting from the policy shocks.
Kebira called for urgent government attention to issues such as electricity supply and insecurity, which he said were critical to improving food production and industrial growth.
Kebira noted that while the economic policies administration of Tinubu had positioned the capital market for growth and attracted investors, it remained essential to address the social and economic implications for sustainable development.
