Nigeria’s capital market is increasingly establishing credibility as a viable exit route for institutional investors, according to the Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, Temi Popoola.
Speaking during a presentation to investors, Popoola stressed that the real measure of a functional market lies not in entry, but in the ability of investors to exit efficiently.
“The true test of any market is not entry, but exit,” he said.
He noted that Nigeria’s markets have historically faced constraints such as foreign exchange illiquidity, delays in profit repatriation, and limited market depth. However, reforms introduced since 2023—including the unification of exchange rates—have significantly improved price discovery and enhanced capital mobility.
According to him, domestic investors now account for about 91 per cent of market activity, providing a stable liquidity base, while foreign participation is gradually rebounding as macroeconomic conditions improve.
Recent transactions are also reshaping investor sentiment. Popoola cited the divestment by Africa Capital Alliance in Aradel Holdings, which delivered a 3.4 times dollar return, as evidence of the market’s growing capacity to support large-scale exits through public listings.
“Foreign capital hasn’t disappeared; it has become more disciplined,” he said, adding that investors are re-engaging in markets where there is greater clarity around execution and exit pathways.
Nigeria remains one of Africa’s largest economies, with a population exceeding 240 million and total market capitalisation above ₦187 trillion. Popoola said the country’s importance is increasingly defined not just by its size, but by its ability to efficiently intermediate capital through stronger and more functional market structures.
While acknowledging persistent challenges such as liquidity concentration and macroeconomic volatility, he described them as transitional rather than structural.
“Nigeria’s markets are not yet frictionless, but they are no longer static,” he added.
