Nigeria’s growth depends on robust capital market reforms — FTC MD

Amid prevailing macroeconomic pressures, Nigeria’s capital market continues to play a key role in investment and economic growth. In this interview with JIDE AJIA, Financial Trust Company Chairman, Niyi Ajayi, speaks on reforms, market performance, integrity, and FTC’s expansion plans across Africa What is your assessment of NGX’s performance in the present economic environment? The Nigerian Exchange has shown remarkable resilience despite foreign exchange volatility, inflationary pressures, and tight monetary policy. The NGX continues to post positive momentum, reflecting both the strength of listed companies and growing recognition that Nigerian equities offer long-term value. The market has matured considerably. Infrastructure is stronger, settlement systems are reliable, and regulatory oversight has improved. The transition to T+1 settlement and ongoing digitalisation efforts will enhance efficiency. However, liquidity remains a challenge, especially among mid- and small-cap stocks, underscoring the need for broader retail and institutional participation. What factors are boosting investor confidence? Three factors stand out – corporate earnings resilience, attractive valuations, and growing institutional interest. Many Nigerian firms, particularly in banking, consumer goods, and industrial sectors, continue to demonstrate profitability despite operating challenges. Nigerian equities also trade below historical and emerging-market averages, creating attractive opportunities for medium- and long-term investors. In addition, domestic pension funds increasingly view equities as inflation hedges, while foreign investors continue to recognise Nigeria’s long-term growth potential. Ongoing reforms in foreign exchange, fiscal policy, and regulation reinforce confidence that structural challenges are being addressed. FTC recently celebrated its 50th anniversary. What do you consider the key drivers of the firm’s resilience and sustained relevance over the years? The single most important factor is integrity. In financial services, trust is currency. For five decades, FTC has prioritised long-term reputation over short-term gain. Founded in 1976 by the late Otunba Olufemi Ajayi, FTC evolved from a traditional stockbroking firm into a diversified financial services platform spanning fund management, investment banking, and FMDQ dealership operations. FTC has also maintained a consistent institutional vision rooted in building enduring Nigerian institutions capable of surviving oil shocks, banking crises, global recessions, and the COVID-19 pandemic. How would y