ASHON Seeks Stronger Regulation, Technology Adoption To Sustain Market Growth

The Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sehinde Adenagbe, has called for stronger regulation, improved transparency and deeper technology adoption to sustain the growth of Nigeria’s capital market, as the Nigerian Exchange Limited (NGX) continues to post historic gains driven by reforms and renewed investor confidence.

Adenagbe, who recently assumed office as ASHON chairman, said despite episodes of short-term volatility, the capital market has remained resilient, supported by improving liquidity, modest growth in corporate earnings and steady participation by both domestic and foreign investors.

He described his election as a call to service at a time when the market is undergoing significant structural changes.

He noted that the NGX delivered an exceptional performance in 2025, ranking among the world’s best-performing emerging and frontier markets.

According to him, the NGX All-Share Index rose by 51.19 per cent to close at an all-time high of 155,613.03 points, marking its strongest annual return in nearly two decades.

Market capitalisation also expanded sharply to about N99.38tn, reflecting robust capital appreciation across the market. Key sectors, including banking, industrials, consumer goods and insurance, recorded strong gains, reinforcing bullish investor sentiment throughout the year.

While acknowledging the positive momentum, the ASHON chairman identified macroeconomic instability, low levels of financial literacy, inconsistent policy signals and gaps in technology infrastructure as major challenges confronting the market.

He said these issues continue to weigh on investor confidence and limit the ability of the market to attract long-term capital.

Adenagbe said ASHON would work closely with regulators and other stakeholders to address these concerns by strengthening ethical standards, improving disclosure practices and enhancing investor-protection frameworks.

He added that the association plans to roll out nationwide investor-education programmes aimed at rebuilding trust and deepening retail participation in the market.

On policy reforms, he described the Investment and Securities Act (ISA) 2025 as a landmark development that is already reshaping Nigeria’s capital market landscape.

He explained that the new law expands the definition of securities, strengthens investor protection and brings new asset classes, including digital assets, under regulatory oversight.

He also noted that the enhanced supervisory powers granted to the Securities and Exchange Commission under the Act contributed to Nigeria’s removal from the Financial Action Task Force grey list in October 2025, a move he said has improved the ease of international transactions and boosted investor confidence.

The ASHON chairman also called for greater clarity around capital gains tax, warning that policy uncertainty in this area previously wiped about N4.8trn off market capitalisation in a single trading session.

He stressed the need for consistent and transparent policy communication to prevent sudden shocks to the market.

Adenagbe emphasised that technology and innovation would remain central to his agenda, noting that modernised trading infrastructure, fintech partnerships and the responsible use of artificial intelligence in risk management and market surveillance are critical to improving efficiency and reducing operational risks.

He added that faster and more transparent dispute-resolution mechanisms would also be prioritised, in response to investor complaints about delays in resolving market-related disputes.

To deepen retail participation, he said ASHON would intensify financial-literacy campaigns, simplify investment products and leverage digital platforms to attract younger investors.

He added that the association would work with the Central Securities Clearing System to shorten account-opening timelines and collaborate with the media to promote accurate and professional reporting of capital market activities.

On regulation, Adenagbe acknowledged progress made by market regulators but called for more collaborative policy-making, particularly on broker operations, cross-border transactions and incentives to attract long-term capital.

He also urged a practical approach to the recapitalisation of stockbroking firms, recommending a phased or tiered framework that allows firms of different sizes to meet new capital requirements without disrupting the industry.

Looking ahead, he reaffirmed the importance of foreign investors in providing liquidity and market depth, noting that ongoing foreign exchange reforms, exchange-rate unification and the introduction of a T+2 settlement cycle have improved pricing transparency and ease of capital repatriation.

Adenagbe assured investors that the reforms implemented since mid-2023 have strengthened market integrity and broadened investment opportunities, citing a 136 per cent rise in the NGX All-Share Index since May 2023.

He said ASHON remains committed to safeguarding investor interests, enhancing transparency and working with all stakeholders to build a more competitive, inclusive and resilient capital market in Nigeria.