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 you evaluate the expansion of indigenous financial institutions in Nigeria and FTC’s contribution to their development?

The rise of indigenous financial institutions is one of Nigeria’s most significant but underappreciated. When FTC began in 1976, Nigerian-owned firms competing in stockbroking were rare. Today, indigenous institutions dominate key areas of the financial system.

This transformation reflects deliberate policies, stronger regulation, and entrepreneurial ambition. FTC’s contribution has been demonstrating that Nigerian firms can compete on quality, trust, and reliability.

The next phase requires pan-African thinking, deeper technological adoption, and strategic partnerships that expand access to capital, expertise, and markets.

What sets FTC’s pan-African strategy apart from others?

FTC’s expansion is not about symbolic geographic presence. The firm targets markets where it can add value through expertise in investment banking, asset management, and capital markets.

The focus is on jurisdictions with sound regulation, growing middle classes, and governments committed to capital market development. Partnerships are central to this strategy because successful African expansion requires local knowledge, relationships, and credibility.

FTC is also investing in scalable digital infrastructure, including mobile trading platforms, digital onboarding, algorithmic execution, and analytics tools capable of supporting clients seamlessly across cities such as Lagos, Nairobi, and Accra.

What steps can be taken to democratise retail investing in Nigeria?

Retail participation remains one of the capital market’s most urgent challenges. Barriers include low financial literacy, limited disposable income, historical distrust, and cumbersome investment processes.

The priority is the removal of barriers. Opening a brokerage account and investing should be as easy as buying airtime or opening a bank account. That requires full digital onboarding, e-KYC verification, and mobile-based investing with entry levels as low as N1,000.

Capital market education should be introduced into secondary school curricula, complemented by social media campaigns and accessible investor education.

Younger Nigerians must be able to access fractional shares, thematic ETFs, and engaging investment platforms. Employer-linked investment schemes with tax incentives could also encourage consistent participation.

Finally, trust must be reinforced through visible enforcement against insider trading, manipulation, and disclosure failures.

Which sectors appear most promising over the next 12 to 24 months, and what are the key drivers behind their outlook?

Banking remains attractive due to strong resilience, healthy margins, and expanding non-interest income streams.

Consumer goods continue to benefit from Nigeria’s youthful, urbanising population and enduring demand for essentials.

Industrial and manufacturing firms, while challenged, present compelling long-term opportunities linked to import substitution and local production. Infrastructure-related sectors such as cement, construction, and building materials also stand out.

Companies with strong digital capabilities and export orientation are particularly noteworthy in an increasingly globalised economy.

How is FTC leveraging technology to maintain its competitive edge?

Technology sits at the centre of FTC’s long-term strategy.

The company is modernising infrastructure through cloud-based systems that improve scalability, flexibility, and integration with fintech partners. These systems also support cross-border expansion without requiring heavy physical infrastructure.

FTC is also developing mobile-first platforms that provide real-time market data, trading, portfolio monitoring, and research access. Data analytics is another major investment area, enabling stronger insights and decision-making.

In addition, FTC embraces fintech collaboration, combining its strengths in market expertise, regulation, and client relationships with specialist technology capabilities.

FTC has weathered numerous challenges. What leadership lessons are shaping its future strategy?

First, liquidity is essential. FTC maintains conservative liquidity buffers and balance-sheet discipline.