Despite recent regulatory advancements, including the Investment and Securities Bill (ISB) 2024, investor confidence in Nigeria’s equities market remains fragile. The new legislation addresses gaps in market oversight, incorporates modern financial instruments like digital assets, and enforces stricter penalties for violations. However, broader macroeconomic and socio-political challenges such as inflation, currency volatility, and geopolitical risks continue to undermine the market’s appeal to both local and foreign investors.
Experts highlight that regulations alone cannot restore investor confidence without addressing systemic economic instability. Issues like double-digit inflation and a weakening naira deter long-term foreign investments, while profit repatriation concerns and the exit of multinational corporations illustrate deeper structural problems. Foreign investor participation in the Nigerian Exchange (NGX) has dwindled significantly, with macroeconomic conditions outweighing the impact of improved regulations.
To attract meaningful investment, stakeholders urge the government to complement regulatory reforms with policies fostering macroeconomic stability and socio-political reforms. Stabilizing the naira, taming inflation, and addressing governance issues are essential to reversing the downward trend in investor confidence. Without these measures, Nigeria’s capital market may struggle to regain its once-prominent position among global investors.
