By Sharon Akuboh and Emmanuel Fateman
Nigeria’s economy stands at a defining moment. Over the past two years, the country has embarked on some of its most far-reaching economic reforms in decades, earning commendation from local and international financial institutions. Yet, despite improving macroeconomic indicators, millions of Nigerians continue to struggle with rising living costs, expensive credit, and declining purchasing power.
This apparent contradiction formed the basis of a World Press Conference organized by the Capital Market Academics of Nigeria (CMAN) at the Nigerian Union of Journalists (NUJ) Press Centre in Abuja, where the President of CMAN, Professor Uche Uwaleke, presented a comprehensive assessment of Nigeria’s economic trajectory and the critical role of the capital market in driving equitable and inclusive growth.
Economic Reforms Worth Commending
Professor Uwaleke acknowledged that the administration of President Bola Ahmed Tinubu had undertaken bold economic reforms that previous governments had largely avoided.
Among these were the removal of fuel subsidy, the unification of the foreign exchange market, banking sector recapitalization, and the implementation of comprehensive fiscal and tax reforms.
According to CMAN, while these reforms imposed short-term hardships, they were necessary to restore macroeconomic stability, strengthen investor confidence, and improve Nigeria’s attractiveness as an investment destination.
The organisation also applauded the work of the Presidential Committee on Fiscal Policy and Tax Reforms, led by the Honourable Minister of Finance and Coordinating Minister of the Economy, Professor Taiwo Oyedele, describing the Nigerian Tax Acts 2025 as landmark legislation capable of improving tax administration, increasing transparency, and supporting long-term economic growth.
Central Bank Earns High Marks
CMAN equally praised the Central Bank of Nigeria for implementing courageous monetary and financial sector reforms.
Among the achievements highlighted were the successful clearance of over seven billion dollars in inherited foreign exchange obligations, the discontinuation of Ways and Means financing, improvements in foreign exchange market liquidity, and the ongoing banking sector recapitalization exercise.
These measures, Professor Uwaleke noted, have restored investor confidence, strengthened Nigeria’s international financial reputation, and attracted renewed foreign capital inflows.
Capital Market Records Historic Growth
Perhaps the most visible beneficiary of these reforms has been the Nigerian capital market.
CMAN disclosed that, as of June 26, 2026, the Nigerian equities market capitalization had exceeded ₦150 trillion, while year-to-date returns approached 50 percent, making the Nigerian stock market one of the world’s best-performing equity markets.
These impressive figures demonstrate the positive response of investors to consistent macroeconomic policies.
However, CMAN warned that rising stock prices alone should not be mistaken for broad-based national prosperity.
Why Nigerians Are Yet to Feel the Gains
Despite encouraging economic statistics, the organisation observed that the benefits of reforms have yet to significantly improve the daily lives of ordinary Nigerians.
Small and Medium Enterprises continue to face limited access to affordable financing due to prohibitively high lending rates, while inflation, particularly in rural communities, remains a major burden.
Agriculture continues to suffer from insecurity, poor transportation infrastructure, inadequate storage facilities, and unreliable electricity, all of which contribute to persistent food inflation.
Professor Uwaleke argued that sustainable economic growth cannot be measured solely by foreign reserves, sovereign credit ratings, or stock market performance, but by improvements in household welfare, employment, and business productivity.
A Call for Balanced Economic Policies
CMAN urged policymakers to gradually moderate interest rates as inflation becomes increasingly driven by structural and supply-side factors rather than excessive demand.
The organisation also encouraged the Central Bank to continue supporting development finance through specialised institutions that can provide affordable financing for agriculture, manufacturing, housing, exports, and small businesses without compromising monetary policy objectives.
According to CMAN, economic stability and economic growth should complement rather than contradict each other.
The Need for Quality Investments
While foreign investment inflows have improved significantly, CMAN expressed concern that over 95 percent of recent capital inflows consist largely of foreign portfolio investments, which are highly mobile and susceptible to sudden reversals.
The organisation stressed the urgent need to attract more Foreign Direct Investment that establishes factories, transfers technology, creates jobs, and expands Nigeria’s productive capacity.
This, it argued, requires stronger policy consistency, improved security, better infrastructure, and enhanced ease of doing business.
Infrastructure Financing Through the Capital Market
Another major concern raised during the briefing was Nigeria’s growing public debt profile, which exceeded ₦159 trillion by the end of 2025.
Rather than relying heavily on conventional government borrowing, CMAN advocated greater use of the capital market to finance long-term infrastructure through instruments such as Sukuk Bonds, Green Bonds, and other thematic securities tied directly to identifiable development projects.
The organisation also encouraged state governments to reduce dependence on short-term commercial bank loans and instead access long-term financing through the capital market.
According to Professor Uwaleke, infrastructure investment remains the surest pathway to improving productivity, lowering business costs, and translating macroeconomic gains into tangible improvements in citizens’ lives.
Deepening the Capital Market
CMAN further recommended policies that would broaden participation in Nigeria’s capital market.
These include encouraging more indigenous companies and government-owned commercial enterprises to list on the Nigerian Exchange, while offering temporary tax incentives for newly listed firms.
The organisation proposed reducing Company Income Tax for listed companies from 30 percent to 25 percent as a strategy to encourage public listing, improve corporate governance, and deepen market liquidity.
CMAN also commended the Securities and Exchange Commission and the Nigerian Exchange Group for introducing reforms such as the T+1 settlement cycle, longer trading hours, and improved technological infrastructure aimed at making Nigeria’s capital market globally competitive.
Looking Beyond the Numbers
Professor Uwaleke concluded that Nigeria’s economic reforms have undoubtedly laid the foundation for long-term stability and investor confidence.
However, he stressed that the next phase of economic management must focus on ensuring that macroeconomic success translates into improved living standards, expanded employment opportunities, accessible financing for businesses, and inclusive wealth creation.
For CMAN, the capital market represents more than a platform for trading securities. It is a powerful instrument for financing infrastructure, supporting entrepreneurship, mobilising long-term investment, and building an economy where growth benefits every Nigerian—not just investors and corporations.
As Nigeria pursues its ambition of becoming a one-trillion-dollar economy by 2030, the challenge before policymakers is no longer simply sustaining economic reforms, but ensuring that every household feels the impact of those reforms.
Only then can macroeconomic stability truly become household prosperity.