Tinubu’s reforms drive capital market surge amid economic strain — Stockbroker

The Managing Director of Globalview Capital Ltd., Mr Aruna Kebira, has said that President Bola Tinubu’s administration has positively influenced Nigeria’s capital market, despite persistent economic difficulties.

Speaking in an interview with journalists over the weekend, Kebira pointed out that a raft of reforms introduced under Tinubu’s leadership has strengthened investor confidence and spurred robust market performance.

He noted that the capital market has experienced significant gains, with key indicators recording notable appreciation over the past two years. The Nigerian Exchange’s All-Share Index (ASI), he stated, has climbed by over 40 percent, while the total market capitalisation of listed equities has risen by 138 percent during the same period.

“These figures reflect a strong bullish momentum in the market, driven by the reforms championed by the Tinubu administration,” Kebira said.

He linked the renewed investor optimism to major policy changes such as the floating of the naira and the removal of fuel subsidies. While these measures have brought considerable hardship in the short term, Kebira maintained that they are critical for achieving long-term economic stability and attracting investment.

“The reforms have not only restored confidence but have also encouraged foreign portfolio investors to return to the market,” he said.

Kebira also drew attention to the Central Bank of Nigeria’s (CBN) recent directive on bank recapitalisation, describing it as a move that would deepen the stock market and reinforce the financial sector.

He further noted that recent government bond issuances, including Nigeria’s first US Dollar Domestic Bond and Eurobond offerings in more than ten years, have enhanced the capital market’s depth while supporting infrastructure development and budget financing.

In addition, he applauded the enactment of the Investment and Securities Act (ISA) 2025, which he said would broaden the capital market through expanded asset classes, stronger regulatory oversight, enhanced investor protection, and a framework for digital and commodity markets.

“The new ISA allows sub-national governments to raise funds from the capital market, which marks a significant shift in Nigeria’s fiscal landscape,” he said.

Reflecting on the early market reaction to Tinubu’s presidency, Kebira recalled that the President’s inaugural speech and swift policy rollouts sparked a strong rally, resulting in the stock market’s best single-day performance in over two years.

Nonetheless, Kebira acknowledged the wider economy continues to face substantial headwinds.

He cited escalating inflation, exchange rate instability, and surging operational costs as major pressures on both households and businesses.

“Although the capital market has gained from these reforms, the average Nigerian is bearing the brunt through soaring costs of fuel, electricity, transportation, and food,” he said.

He also raised concern over the rising number of small and medium-sized enterprises (SMEs) that have shut down operations due to the increasing cost of doing business in the current policy environment.

Kebira called on the government to urgently confront fundamental challenges such as unreliable electricity supply and insecurity, which he described as crucial to revitalising food production and industrial activity.

In his closing remarks, Kebira said that while Tinubu’s economic direction has strategically positioned the capital market for sustained growth, it is vital that government adopts a more balanced approach to mitigate the social and economic hardships being experienced across the country.