Business
Why Capital Market Activities Are Low For Now – Operators
Some capital market operators have said that activities in the nation’s bourse would continue to experience mixed performances until a new government is sworn-in.
They told newsmen in Lagos that the slowdown was due to investors “wait and see’’ attitude.
The Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, Lagos said that for now investors were repositioning ahead of the transition on May 29.
Omordion said that anxiety surrounding the economic agenda of the incoming government was also responsible for mixed performances.
Omordion, however, expressed optimism that the market would normalise once the economic blueprint of the incoming government was certain.
Managing Director, Union Standard Securities Ltd., Mr SehindeAdenagbe, said the market would experience more influx of both local and foreign investors once an economic direction was ascertained.
Adenagbe said that the market reacted positively to the outcome of the elections but witnessed profit-taking thereafter.
He urged the incoming government to ensure friendly economic policies and patronise the capital market for developmental projects instead of depending on money market instruments.
Meanwhile, a turnover of 2.06 billion shares worth N17.18 billion were traded by investors in 25,577 deals last week.
This is against the 1.92 billion shares valued N19.402 exchanged in 23,988 deals in the preceding week.
The Financial Services Industry led the activity chart with 1.61 billion shares worth N9.90 billion traded in 14,438 deals.
The Conglomerate Industry followed with 214.68 million shares worth N1.58 billion traded in 1,604 deals.
The third place was occupied by the Consumer Goods sector with 84.94 million shares valued N3.04 billion transacted in 4,313 deals.
The All-Share Index, during the review period lost 519.33 points or 1.48 per cent to close at 34,485.72 against 35,005.05 posted in the previous week due to price losses.
Also, the market capitalisation lost N177 billion or 1.48 per cent to close at N11.751 trillion compared with N11.928 trillion recorded in the preceding week.
A breakdown of the price movement chart for the week showed that Ikeja Hotel topped the losers’ chart in percentage terms by 22.06 per cent or N1.07 to close at N3.78 per share.
Costain dropped by 16 per cent or 16k to close at N1.17, while Trans Nationwide Express declined by 13.33 per cent or 18k to close at N1.17 per share.
On the other hand, R.T. Briscoe led the gainers’ table by 20.24 per cent or 17k to close at N1.01 per share.
Neimeth International Pharmaceuticals followed with 18.95 per cent or 18k to close at N1.13, while NPF Micro Finance Bank gained 18.80 per cent or 22k to close at N1.39 per share.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
