Nigeria’s Risk Profile Has Improved, Investors Should Tap Opportunities — NGX Chairman

 

 

 

Chairman of the Nigerian Exchange Group (NGX Group), Alhaji (Dr.) Umaru Kwairanga, has said Nigeria’s country risk profile has improved considerably over the past three years, urging global investors to take advantage of the opportunities available in the country.

 

Kwairanga stated this while speaking at the Nigeria Investment Forum 2026 in New York, United States, where he highlighted reforms undertaken by the federal government and developments in Nigeria’s capital market.

 

The forum, themed “Connecting Capital to Opportunity: Investing in Africa’s Next Frontier,” brought together government officials, members of the diplomatic community, institutional investors, development finance institutions and business leaders.

 

According to the NGX Group chairman, Nigeria’s investment proposition is increasingly supported by reforms in fiscal and monetary policy, as well as the country’s vast natural resources, large population and expanding private sector.

 

He said the reforms implemented by the administration of President Bola Ahmed Tinubu, including the removal of fuel subsidy, the unification of the foreign exchange market, monetary policy reforms and changes to the tax regime, had contributed to improvements in the macroeconomic and business environment.

 

“We can affirm that those reforms, including the removal of fuel subsidies, discontinuing parallel exchange rate regimes, sensible monetary policy and a reformed tax regime, have had positive impact on the country’s macroeconomic growth and the business environment for companies, both big and small,” he said.

 

Kwairanga noted that the developments had also been reflected in the Nigerian capital market, which, according to him, had recorded double-digit growth every year since 2023.

 

He said the Nigerian Exchange viewed its role as extending beyond providing a platform for securities trading, stressing that the exchange was part of the broader ecosystem for capital formation and economic growth.

 

“Our role extends beyond providing a marketplace where securities are traded. It is about helping to create an environment in which businesses can access long-term financing, investors can participate in credible opportunities and savings can be channelled towards productive sectors of the economy,” he said.

 

The NGX chairman identified investor confidence as critical to attracting and retaining capital, noting that confidence depended on sound regulation, credible governance, transparency, market integrity and efficient market infrastructure.

 

He said investors considering Nigeria must weigh the risks against the returns available in the market, arguing that the country’s risk profile was now considerably lower than it was three years ago while investment returns remained attractive.

 

Kwairanga also pointed to Nigeria’s crude oil and solid mineral resources, agricultural potential and large, youthful population as factors that could support long-term economic growth.

 

He said the narrative around Nigeria was changing, with the country’s economic potential increasingly supported by what he described as a stable democratic environment and leadership focused on supporting the private sector and attracting foreign investment.

 

“International investors have an important role in this journey. Foreign capital brings more than financing; it can also bring expertise, technology, global networks, institutional discipline and access to international markets,” he said.

 

Speaking on developments at the Nigerian Exchange, Kwairanga said the exchange had leveraged the changing business environment and government support to strengthen the Nigerian capital market.

 

He said NGX had recorded growth in market capitalisation, trading volumes and trading values over the past couple of years, while also onboarding millions of new investors through its trading licence holders, marketing initiatives and digital innovations.

 

He cited NGX Invest, the exchange’s platform for primary offers, as one of the innovations helping to improve access to the capital market.

 

Kwairanga also pointed to the ongoing Dangote Refinery Initial Public Offering (IPO), which he said was setting records in terms of capital raised and number of subscribers on the African continent.

 

According to him, the developments demonstrate the capacity of the Nigerian Exchange to serve as a platform for capital raising while providing investment opportunities to investors.

 

He stressed that a strong capital market should ultimately contribute to the real economy by enabling businesses to expand, transforming savings into productive investments, financing infrastructure and broadening economic ownership.

 

The NGX chairman urged venture capital firms, private equity investors and other institutional investors to explore opportunities in infrastructure financing, solid minerals, large-scale agriculture, fintech and tourism.

 

He said the exchange had dedicated desk officers available to engage prospective investors and connect them with local partners.

 

For individual investors, Kwairanga invited investors to explore securities listed on the exchange’s premium and main boards.

 

He disclosed that more than 300 securities were listed on the boards, while over 150 investment firms operated as active trading licence holders of the Nigerian Exchange.

 

“These firms are staffed by experienced professionals and equipped with the latest market technology and able to guide you through how to invest in Nigerian financial assets and commodities,” he said.

 

Kwairanga described Nigeria as a country with significant untapped economic potential, comparing its current position to China in the 1980s.

 

“Nigeria is akin to China in the 1980s, a giant that is about to unleash its full potential,” he said, urging international investors to participate in the country’s growth.

 

He added that connecting capital to opportunity should ultimately translate into productive enterprise, job creation, innovation, increased productivity and sustainable economic value.

 

“Our collective task is to continue strengthening the institutions, markets and partnerships that can transform those opportunities into investable and scalable propositions,” he said.