Economy
Retail investors dominate transactions in Nigeria equities market— Onyema
The Nigerian Stock Exchange (NSE) has said that low yield environment caused by Coronavirus pandemic has positioned the equity market with domestic investors accounting for 60 per cent of market transactions. Mr Oscar Onyema, NSE Chief Executive Officer, said this during webinar organised by the Exchange with the theme: `Capital Markets in a Pandemic’. Onyema speaking at the event said low yield environment had positioned the equity markets as a credible alternative for domestic institutional and retail investors. He said that domestic investors had risen to the occasion in sustaining the equities market performance, accounting for about 60 per cent of trading activity.
“Surprisingly, domestic investors have risen to the occasion in sustaining the equities market performance. This year, domestic investors have accounted for almost 60 per cent of the trading activity compared to an average of 51 per cent in the past four years.
“Despite these economic headwinds, the NSE All-Share Index has returned month on month gains of 8.1 per cent and 9.8 per cent at the end of April and May, respectively,” Onyema said. He said that the pandemic had resulted in a decline in oil export earnings – which accounts for over 80 per cent of Nigeria’s export earnings – and remittances by Nigerians in the diaspora. Concurrently, foreign portfolio investor flight to safety has further intensified pressures on the nation’s foreign reserves and exchange rate,” Onyema said. He said that liquidity in the foreign exchange window accessible to investors was also affected. The CEO stressed the need for collaboration among exchanges, governments as well as use of technologies to remain resilient in the face of COVID-19 pandemic.
According to him, the pandemic has changed the way and manner things used to be before.
“Technology has long been a fundamental building block for growth in capital markets.
Today, digitisation and advanced analytics offer tremendous new potential. The capital markets industry, today, finds itself in a transitional period where it can adapt to digital trends and technologies as well as innovate with new business models and products/services. At the NSE, we see asset digitalisation beginning to create a whole new user experience. The Exchange has continued to leverage on its cutting-edge technology and various innovative platforms to ensure continued trading and listing activities on its bourse,” Onyema said.
Also speaking, Nandini Sukumar, Chief Executive Officer, World Federation of Exchanges, said capital market investment would be safe with stakeholders’ collective efforts.
Sukumar said exchanges would continue to ensure fair and orderly market even in the time of distress and international shocks. “Stock exchanges exist to provide robust market structures that support issuers and investors, and we have seen this resilience amidst the COVID-19 pandemic. This resilience has not been an accident. Rather, we are seeing the result of a wide range of resources. Global exchanges have invested over a decade to prepare for a crisis such as this,” she said. Mr Nikil Rathi, Chief Executive Officer, London Stock Exchange, said the pandemic would change investors’ way of investment.
“We anticipate a change in the nature of investing. We have seen an increased focus on Environment, Social and Corporate governance (ESG) across asset classes, and this push is coming from investors who want to see the impact of their investments,” Rathi said. Mr Robert Scharfe, Chief Executive Officer, Luxembourg Stock Exchange (LuxSE), assured investors of functional effective markets to curtail volatility. Scharfe said over $20 billion social and sustainability bonds earmarked COVID-19 had been listed on LuxSE over the past three months. According to him, there is a strong appetite from investors for such kinds of bonds in the recent time. Otunba Abimbola Ogunbanjo, NSE Council President, said the Exchange designed the webinar to provide a platform for discussions that would lead global exchanges to bolster ecosystem resilience.
Ogunbanjo said the webinar deliberations “have addressed critical issues around the vulnerability and unique opportunities that the COVID-19 pandemic has created and how they are being – and will continue to be – addressed.”
“It is my sincere hope that we will continue to sustain these conversations around business innovation and partnerships even as countries gradually reopen and economies resume their activities. Today, we have highlighted some of the steps that we can expect to see in the near future, including the development of alternative and sustainable asset classes; dependence on technology and digital innovation; commitment to customer centricity; and drive for collaboration across regions. With these, capital market players can rest assured that exchanges will continue to execute on their mandate to deliver a platform to raise and access capital even during a crisis. Certainly, we are living in unprecedented times, but from what we have heard here today, I believe that we can all leave with the confidence that there is a lot to look forward to in this ‘new normal’,” he said.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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