Fadahunsi: Nigeria’s Capital Market Needs More Depth, Trust, Awareness

Mr. Kayode Fadahunsi, Managing Director/Chief Executive Officer of AVA Capital Plc, discusses the need for Nigeria's capital market to deepen, highlighting trust as a crucial factor. He emphasizes that a strong capital market relies on investor confidence, which stems from the responsible allocation of capital and the operations of institutions within the market. Greater financial education and awareness among investors are also essential to deepen market participation.

Fadahunsi points out that investment banks and other financial institutions play a vital role beyond executing transactions. They can assist businesses in accessing capital for growth, professionalizing operations, and preparing for larger markets. Successful businesses that secure long-term financing can drive employment, increased production, and broader economic activity.

Stakeholders can encourage retail investors in Nigerian markets by enhancing investor education efforts. The Securities and Exchange Commission (SEC) of Nigeria has introduced regulations recognizing digital assets as securities, aligning with practices in developed countries. Trust in financial institutions must be earned through competence, discipline, transparency, and consistency. People must be made aware of the opportunities and risks associated with various investment decisions.

Since being listed on the Nigerian Exchange Group (NGX), AVA Capital has experienced several changes. The company faced the challenge of adhering to proper bookkeeping requirements and implementing proper governance structures. By meeting these basic foundations, AVA Capital commits to consistent and transparent communication, setting the stage for future growth and development within the Nigerian capital market.