The President of the Association of Issuing Houses of Nigeria (AIHN), Kemi Awodein, has linked the rise of Ponzi schemes in the country to idle capital seeking profitable investment outlets.
Speaking at the AIHN Annual Investment Banking and Awards Dinner in Lagos, Awodein stressed the urgent need to redirect such funds into regulated investment products.
Awodein highlighted the pivotal role of issuing houses in guiding capital toward productive economic sectors, particularly amid ongoing recapitalisation exercises across Nigeria’s banking, insurance, and pension industries. “Issuing houses remain central to ensuring that capital flows into productive channels, supporting equity offerings, mergers and acquisitions, and debt issuances,” she said.
The recapitalisation cycle has driven increased equity transactions in 2024, she noted, with investors maintaining confidence despite macroeconomic headwinds. “Interest rates are moderating, and we expect more corporates to return to the debt market for operational and expansion financing,” Awodein added.
Technology Boosts Retail Participation
NGX Chief Executive Officer, Jude Chiemeka, emphasized the role of technology in expanding retail investor participation through platforms like NGX Invest. “Retail active investors have grown from less than 300,000 to almost 850,000, thanks to technological adoption,” he said. Chiemeka also highlighted upcoming securitisation and municipal bond programmes as avenues to broaden corporate financing options.
Economic Outlook and Market Performance
Former AIHN President and Afrinvest Group Managing Director, Dr. Ike Chioke, pointed to improving macroeconomic indicators, including declining inflation, lower interest rates, and a stabilizing exchange rate. “With market capitalization at about N140 trillion and year-to-date gains near 50%, the equities market remains highly attractive,” Chioke said. He encouraged investors to focus on fundamentally strong companies and emerging sectors such as fintech and infrastructure.
Support from Lagos State Government
Representing Lagos Governor Babajide Sanwo-Olu, former Finance Commissioner Abayomi Oluyomi assured that the state would continue enhancing the business environment for capital market operators.
He pledged support for infrastructure, streamlined transaction processes, and the development of locally tailored investment products. Oluyomi urged investors to back startups and sustainable ventures to drive broader economic growth.
