- …as Chairman seeks tax, FX policy alignment to sustain growth in 2026
By Joe Udo
ABUJA (CONVERSEER) – The Chairman of Nigerian Exchange (NGX) Group Plc, Dr Umaru Kwairanga, has called for urgent harmonisation of tax and foreign exchange policies to attract long-term global capital inflows into Nigeria’s capital market in 2026.
He made the appeal in his 2025 Capital Market Review and Forward-Looking Agenda, where he emphasised that predictable macroeconomic conditions, improved regulatory clarity and coherent policy frameworks will be central to sustaining momentum recorded in 2025.
Kwairanga disclosed that total market capitalisation across equities, bonds and exchange-traded products stood at N149.88 trillion as at 24 December 2025. He noted that the market’s historic performance was supported by policy and regulatory reforms, recapitalisation in the financial sector and increased participation by both retail and institutional investors.
According to him, the NGX All-Share Index rose by about 49.17 per cent to close at 153,539.8 points, placing Nigeria among Africa’s top-performing exchanges despite foreign exchange challenges, macroeconomic headwinds and global volatility. Equities accounted for N98.89 trillion, representing more than 65 per cent of total capitalisation, backed by strong corporate earnings and resilience across banking, consumer goods, industrials and telecommunications.
Kwairanga said domestic investors dominated the market in 2025, responsible for nearly 80 per cent of trading value, while foreign investors accounted for around 20 per cent. Although foreign portfolio inflows improved year-on-year with several periods of double-digit growth, he stated that participation remained limited by foreign exchange instability, capital gains tax uncertainty and repatriation concerns.
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He explained that renewed offshore inflows indicate rising global interest in Nigerian assets, but warned that sustained progress will rely on harmonised tax systems, transparent foreign exchange frameworks and efficient cross-border settlement mechanisms.
Looking ahead, Kwairanga said the NGX agenda for 2026 will focus on coordinated reforms across investors and issuers, regulators and market operators to deepen liquidity, strengthen market integrity and build resilience. He urged investors to prioritise long-term, diversified strategies capable of maintaining capital stability, while noting that technology will play a growing role in influencing investor engagement and access.
Kwairanga underscored the increasing importance of environmental, social and governance (ESG) principles, describing them as key to improving investor confidence and attracting global capital. He called for clearer disclosure policies, enhanced product innovation such as derivatives and exchange-traded instruments, and stronger enforcement to reinforce transparency.
He added that improved market infrastructure, digital platforms, cross-border connectivity and continuous investor education are essential to aligning Nigeria with global best practices. On the primary market, Kwairanga said 2025 reflected growing confidence as new listings and equity issuances boosted total capital raised to N6.34 trillion, largely driven by ongoing bank recapitalisation efforts.
Kwairanga concluded that with harmonised policies, strong governance and technology-led reforms, Nigeria’s capital market is well-positioned to extend its performance and enhance global appeal in 2026.
