May 06, (THEWILL) — Financial services group FSDH Merchant Bank has called for stronger mobilisation of long-term capital to maintain momentum in Nigeria’s equities market, urging banks and other financial institutions to take a more proactive role.
Speaking at the firm’s inaugural Investors’ Conference in Lagos, the Managing Director, Bukola Smith, said recent stock market gains signal renewed investor confidence but warned that sustained inflows are essential to preserve resilience.
She stressed that unlocking durable funding requires coordinated efforts among banks, regulators, institutional investors, and development finance institutions. According to her, strong market performance alone does not define an investable nation; rather, it depends on policy consistency, transparency, and trust that long-term capital can be deployed safely and productively.
Smith acknowledged concerns about the banking sector’s support for the real economy but expressed optimism that recent recapitalisation efforts would boost lending capacity. She noted that Nigeria still faces significant investment gaps in infrastructure and productive sectors, adding that public funding alone is insufficient to meet these needs.
While optimistic, she cautioned that capital deployment must be carefully managed to safeguard financial stability, emphasising the importance of robust risk management frameworks within banks.
In a keynote address, Emomotimi Agama, Director General of the Securities and Exchange Commission Nigeria, highlighted regulatory clarity, discipline, and institutional trust as critical to sustaining investment flows. He noted that Nigeria’s market capitalisation has surpassed ₦130 trillion and stressed the need for forward-looking regulation that anticipates innovation.
Nigeria’s equities market closed Q1 2026 strongly, gaining 29.35 percent, with the All-Share Index crossing the 200,000 mark for the first time extending a six-quarter winning streak and underscoring robust investor participation.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
