Why Nigeria’s Capital Market Will Continue to Manifest Positive Momentum –Omoniyi Ajayi
Nigeria’s capital market has evolved into a critical driver of investment, wealth creation, and economic development despite persistent economic pressures. In this interview, Group Managing Director of Nigeria’s first indigenous stockbroking company, Financial Trust Company (FTC), Omoniyi Ajayi, reflects on the Nigerian Exchange (NGX), the reforms required to deepen market participation, the enduring importance of trust and integrity in financial services, and FTC’s pan-African ambitions.
As the Group Managing Director of Nigeria’s first indigenous stockbroking company, how do you assess the performance of the NGX in the current economic climate?
The Nigerian Exchange has shown remarkable resilience despite foreign exchange volatility, inflationary pressures, and tight monetary policy. The NGX continues to post positive momentum, reflecting both the strength of listed companies and growing recognition that Nigerian equities offer long-term value.
The market has matured considerably. Infrastructure is stronger, settlement systems are reliable, and regulatory oversight has improved. The transition to T+1 settlement and ongoing digitalisation efforts will enhance efficiency. However, liquidity remains a challenge, especially among mid- and small-cap stocks, underscoring the need for broader retail and institutional participation.
What is driving investor confidence?
Three factors stand out – corporate earnings resilience, attractive valuations, and growing institutional interest.
Many Nigerian firms, particularly in banking, consumer goods, and industrial sectors, continue to demonstrate profitability despite operating challenges. Nigerian equities also trade below historical and emerging-market averages, creating attractive opportunities for medium- and long-term investors.
In addition, domestic pension funds increasingly view equities as inflation hedges, while foreign investors continue to recognise Nigeria’s long-term growth potential. Ongoing reforms in foreign exchange, fiscal policy, and regulation reinforce confidence that structural challenges are being addressed.
FTC recently marked 50 years in business. What has been the most significant factor behind the firm’s resilience and continued relevance?
The single most important factor is integrity. In financial services, trust is currency. For five decades, FTC has prioritised long-term reputation over short-term gain.
Founded in 1976 by the late Otunba Olufemi Ajayi, FTC evolved from a traditional stockbroking firm into a diversified financial services platform spanning fund management, investment banking, and FMDQ dealership operations.
FTC has also maintained a consistent institutional vision rooted in building enduring Nigerian institutions capable of surviving oil shocks, banking crises, global recessions, and the COVID-19 pandemic.
How do you assess the growth of indigenous financial institutions in Nigeria and the role of the FTC in the evolution?
The rise of indigenous financial institutions is one of Nigeria’s most significant but underappreciated. When the FTC began in 1976, Nigerian-owned firms competing in stockbroking were rare. Today, indigenous institutions dominate key areas of the financial system.
This transformation reflects deliberate policies, stronger regulation, and entrepreneurial ambition. FTC’s contribution has been demonstrating that Nigerian firms can compete on quality, trust, and reliability.
The next phase requires pan-African thinking, deeper technological adoption, and strategic partnerships that expand access to capital, expertise, and markets.
What differentiates FTC’s pan-African strategy?
FTC’s expansion is not about symbolic geographic presence. The firm targets markets where it can add value through expertise in investment banking, asset management, and capital markets.
The focus is on jurisdictions with sound regulation, growing middle classes, and governments committed to capital market development. Partnerships are central to this strategy because successful African expansion requires local knowledge, relationships, and credibility.
FTC is also investing in scalable digital infrastructure, including mobile trading platforms, digital onboarding, algorithmic execution, and analytics tools capable of supporting clients seamlessly across cities such as Lagos, Nairobi, and Accra.
How can retail investing be democratised in Nigeria?
Retail participation remains one of the capital market’s most urgent challenges. Barriers include low financial literacy, limited disposable income, historical distrust, and cumbersome investment processes.
The priority is the removal of barriers. Opening a brokerage account and investing should be as easy as buying airtime or opening a bank account. That requires full digital onboarding, e-KYC verification, and mobile-based investing with entry levels as low as ₦1,000.
Capital market education should be introduced into secondary school curricula, complemented by social media campaigns and accessible investor education.
Younger Nigerians must be able to access fractional shares, thematic ETFs, and engaging investment platforms. Employer-linked investment schemes with tax incentives could also encourage consistent participation.
Finally, trust must be reinforced through visible enforcement against insider trading, manipulation, and disclosure failures.
Which sectors look promising over the next 12 – 24 months and why?
Banking remains attractive due to strong resilience, healthy margins, and expanding non-interest income streams.
Consumer goods continue to benefit from Nigeria’s youthful, urbanising population and enduring demand for essentials.
Industrial and manufacturing firms, while challenged, present compelling long-term opportunities linked to import substitution and local production. Infrastructure-related sectors such as cement, construction, and building materials also stand out.
Companies with strong digital capabilities and export orientation are particularly noteworthy in an increasingly globalised economy.
How is FTC using technology to remain competitive?
Technology sits at the centre of FTC’s long-term strategy.
The company is modernising infrastructure through cloud-based systems that improve scalability, flexibility, and integration with fintech partners. These systems also support cross-border expansion without requiring heavy physical infrastructure.
FTC is also developing mobile-first platforms that provide real-time market data, trading, portfolio monitoring, and research access. Data analytics is another major investment area, enabling stronger insights and decision-making.
In addition, FTC embraces fintech collaboration, combining its strengths in market expertise, regulation, and client relationships with specialist technology capabilities.
FTC has survived many headwinds. What leadership lessons guide its future strategy?
First, liquidity is essential. FTC maintains conservative liquidity buffers and balance-sheet discipline.
Second, culture matters. Shared values such as integrity, client focus, and long-term thinking determine whether strategies succeed under pressure.
Third, FTC deliberately diversified its products, markets, and revenue streams to reduce dependence on any single area.
Speed of response is another critical lesson. During crises, delayed decisions can be more dangerous than imperfect but timely action.
What reforms are needed to unlock Nigeria’s capital market potential?
Tax policy should better incentivise equity investment through measures such as long-term capital gains exemptions or tax-advantaged investment accounts.
Pension reforms could gradually increase permissible equity exposure for pension funds while strengthening governance standards. Market-making mechanisms and settlement improvements would also support liquidity, especially among smaller stocks.
Corporate governance enforcement must be stronger, with meaningful penalties for repeated violations. Product innovation should accelerate, particularly around ETFs, REITs, derivatives, and commodity-linked instruments.
Foreign investor confidence also depends on a more efficient forex market with easier capital repatriation and a sustained commitment to market-driven exchange rates.
Ultimately, Nigeria needs a coordinated national capital market strategy involving regulators, government agencies, and industry stakeholders.
As Nigeria’s oldest indigenous financial institution, how is FTC preparing the next generation of financial leaders and ensuring institutional continuity beyond its founding legacy?
Institutional continuity depends on investing in people, embedding values, and building systems that outlast individuals.
FTC runs structured mentorship, leadership development, and professional certification programmes across career levels. Apprenticeship and knowledge transfer from senior leaders remain central to preserving institutional experience.
The company recruits for values as much as competence, reinforcing integrity, client focus, and accountability through performance systems and zero tolerance for ethical breaches.
Equally important are documented processes, risk frameworks, and governance systems that ensure quality does not depend on any single leader.
The ultimate test of institutional success is continuity of values, not tactics.
