Within the room, again: the variable Nigeria finally admitted

A year ago, I reported from Brasília on the Nigerian Exchange Group (NGX Group) meeting with President Bola Ahmed Tinubu. I argued that many discussions on Nigeria's economy overlooked crucial variables. Recently, at Aso Villa, I witnessed critics' previous omissions being addressed, not by critics, but by the nation itself. For years, Nigeria's economic discourse focused solely on oil production, foreign reserves, inflation, and the exchange rate.

The capital market, a crucial mechanism for financing enterprises and building infrastructure, remained a footnote. At a strategic meeting with the NGX Group's Board and Management, I observed this omission being formally admitted. The capital market is now discussed alongside fiscal and monetary policy as an instrument of national strategy.

Group MD/CEO, Mr. Temi Popoola, reported a significant increase in the total value of listed stocks from ₦30 trillion to ₦160 trillion, with an expected rise to ₦230 trillion. This surge in asset prices reflects the expectations of millions of investors. The Central Bank's recapitalization, largely funded domestically, strengthens this confidence.

NGX Group, along with the Securities and Exchange Commission and other market operators, has played a vital role in building this market infrastructure. The Governor of the Central Bank acknowledged the success of this recapitalization, emphasizing that the process was not merely a success of one institution, but a collective effort.

The capital market's role in converting policy confidence into actual capital formation cannot be overstated. NGX Group's priorities, including the privatization and listing of government assets and the domestic listing of leading companies, demonstrate this role. The reformation and listing of NNPC Limited, a key national asset, will bring transparency and market discipline.

This is a clear indication that the capital market is no longer an afterthought, but a central part of Nigeria's economic model. The President's statement that a strong stock market indicates national prosperity underscores the importance of this variable.