The Securities and Exchange Commission (SEC) has expressed confidence that Nigeria’s capital market will remain resilient despite the build-up to the country’s next general elections, saying stronger macroeconomic fundamentals, deeper domestic institutional participation and sweeping regulatory reforms have positioned the market to withstand political uncertainty.
Director-General of the SEC, Dr. Emomotimi Agama, made the remarks while responding to questions from journalists during the Mid-Year Capital Market Review, Mid-Year Macroeconomic Review and Investment Outlook for the second half of 2026, organised by Arthur Steven Asset Management Limited.
Agama said while election periods traditionally encourage cautious investment behaviour, particularly among foreign portfolio investors, the current cycle differs significantly from previous election years due to the strength of ongoing economic reforms and the resilience of Nigeria’s financial markets.
According to him, elections themselves do not necessarily undermine market performance, as investors are more concerned about policy uncertainty than the political calendar.
He noted that Nigeria’s macroeconomic environment is considerably stronger than during comparable pre-election periods over the past decade, adding that domestic institutional investors, including pension fund administrators, insurance companies and collective investment schemes, now provide a stable anchor for the market.
“The Commission’s responsibility is to ensure that market regulation remains completely insulated from politics. Our rules, enforcement mechanisms and market infrastructure will continue to function efficiently before, during and after the elections,” he said.
Agama added that investors with medium- and long-term investment horizons often find periods of pre-election caution attractive opportunities to accumulate fundamentally strong stocks at favourable prices.
Speaking on the recent rally in the Nigerian equities market, the SEC boss dismissed suggestions that stock prices have become excessively inflated, insisting that the impressive performance recorded during the first half of the year was supported by improving economic fundamentals rather than speculative trading.
He explained that the market’s gains reflected stronger corporate earnings, the successful recapitalisation of banks, improving exchange rate stability and renewed foreign investor participation.
According to him, although the Nigerian Exchange recorded a remarkable 47.4 per cent return during the first half of 2026, investors should now place greater emphasis on company fundamentals rather than broad market momentum.
“The easy repricing has largely taken place. Going forward, earnings growth, sound corporate governance and financial performance will determine which companies continue to outperform,” he said.
Agama stressed that the Commission remains focused on maintaining market integrity by ensuring full corporate disclosures, promoting fair trading practices and taking firm enforcement action against market manipulation.
On sectors with the strongest investment prospects, the SEC Director-General identified banking and financial services, energy, and agriculture as offering the greatest long-term opportunities.
He said the ongoing banking sector recapitalisation has significantly strengthened the industry’s capital base, positioning banks for higher earnings growth, expanded lending activities and improved shareholder returns over the next few years.
He also pointed to the oil and gas industry, particularly the refining and gas value chains, as a major beneficiary of increasing domestic production, favourable global energy prices and anticipated new listings on the Nigerian capital market.
Agama described agriculture as a “sleeping giant,” noting that government efforts to improve food production, expand agricultural investments and develop innovative capital market instruments such as agro-bonds, commodity exchanges and specialised investment funds are creating significant financing and investment opportunities.
He further highlighted infrastructure financing as another promising asset class, particularly for fixed-income investors seeking attractive risk-adjusted returns through corporate and sub-national infrastructure bond issuances.
Commenting on growing calls for specialised commercial tribunals to handle investment-related disputes, Agama expressed strong support for the initiative, arguing that speedy and technically competent dispute resolution is critical to attracting long-term investment.
He said Nigeria’s Investments and Securities Tribunal, strengthened under the Investments and Securities Act (ISA) 2025, has already demonstrated the value of specialised adjudication in resolving complex capital market disputes.
According to him, lengthy court proceedings discourage investment by increasing legal uncertainty and delaying the enforcement of commercial rights.
Drawing comparisons with major global financial centres such as London, Singapore and Dubai, Agama said countries that provide efficient commercial justice systems are generally more attractive destinations for domestic and international capital.
He urged policymakers to ensure that any specialised commercial tribunals are adequately staffed with experts, operate under clearly defined timelines and prioritise the effective enforcement of judgments while preserving the existing jurisdiction of the Investments and Securities Tribunal over securities-related matters.
Agama maintained that strengthening Nigeria’s legal and regulatory architecture would further boost investor confidence, deepen capital market development and support sustainable economic growth.
