Stockbrokers Urge Government to Strengthen Capital Formation

The Chartered Institute of Stockbrokers (CIS) has called on the Federal Government to take immediate and coordinated steps to strengthen Nigeria’s capital formation as a crucial pathway to achieving the country’s ambition of building a $1 trillion economy.

The appeal was made following a one-day workshop organized by the Institute at the State House Conference Centre in Aso Rock, Abuja. The event, which brought together top market players, government representatives, and financial experts, carried the theme: “Capital Formation in Nigeria: Empowering Industry, Institutions, and Markets to Drive a $1 Trillion Economy.”

In a statement released after the event, jointly signed by the President and Chairman of the Council, Oluropo Dada, and the Registrar and Chief Executive, Ayorinde Adeonipekun, the Institute emphasized the urgent need for deliberate economic reforms that will reposition the Nigerian capital market as a major engine of growth. According to the CIS, achieving a trillion-dollar economy will require more than just policy talk—it demands real coordination among key players in the financial, trade, and industrial sectors, with clear leadership from the federal government.

The Institute believes that to unlock this level of economic growth, Nigeria must place capital formation at the heart of its development strategy. This includes improving access to long-term capital for businesses and industries, which has historically been difficult due to weak investor confidence and inconsistent government policies. The CIS warned that unless deliberate steps are taken to harmonize fiscal, trade, and monetary policies, capital markets will continue to underperform and remain unattractive to both local and foreign investors.

According to the stockbrokers, Nigeria is facing multiple challenges that continue to make its financial markets unstable and unattractive for investment. They pointed to volatile foreign direct investment (FDI) inflows, which have become increasingly difficult to sustain due to the country’s foreign exchange risks, regulatory uncertainty, and persistent infrastructure shortfalls. In such a tough environment, global investors are likely to look elsewhere.

At the same time, domestic capital remains underutilized. The Institute noted that critical sources of long-term funding such as pension funds, insurance pools, and retail savings have not been fully leveraged to support industrial growth. These local funds, if mobilized properly, can help bridge the financing gaps in key sectors such as manufacturing, energy, and agriculture.

In their post-event communique, CIS also highlighted the vast potential that lies within Nigeria’s informal sector. With millions of people operating outside the formal economy, the country is missing out on a massive opportunity to expand its tax base and generate local investment capital. The Institute stressed that efforts to integrate the informal sector through digitization, simplified regulation, and access to formal banking could unlock billions in idle capital and contribute to national development.

Another area of opportunity lies in diaspora savings and remittances. According to the CIS, Nigeria needs to develop structured financial products that specifically target its growing diaspora community. With remittance inflows regularly surpassing oil revenues, designing savings bonds, infrastructure investment notes, or real estate-linked securities aimed at Nigerians living abroad could provide a consistent source of capital for critical projects at home.

The Institute also called for the creation of a national savings strategy that would encourage individuals and businesses to save and invest in productive sectors. In many advanced economies, strong saving cultures have played a significant role in financing development. Nigeria, the CIS believes, needs to build a framework that channels local savings into priority areas such as housing, roads, rail, energy, and healthcare through public-private partnerships and specialized investment vehicles.

Capital market regulators were not left out of the conversation. The CIS urged them to prepare for the incoming Investments and Securities Act (ISA) 2025 by focusing on reforms that would deepen trust in the market. These include stronger enforcement of corporate governance rules, improved financial disclosures by listed companies, and more transparent dispute resolution processes for investors and issuers. The upcoming legislation, they believe, presents a golden opportunity to modernize Nigeria’s capital markets and align them with global best practices.

At the operational level, CIS encouraged market players to innovate and diversify the range of investment products available to the public. Nigeria’s investor base is increasingly dominated by younger demographics such as millennials, Gen Z, and even Gen Alpha, who have different financial expectations and habits. To attract these groups, the market must offer creative options such as real estate investment trusts, venture capital opportunities, green bonds, and long-term infrastructure funds that are accessible through digital platforms.

Beyond financial returns, today’s investors are looking for purpose-driven investment opportunities that align with their values. As such, the Institute stressed that the Nigerian capital market must embrace sustainable finance and environmental, social, and governance (ESG) principles to stay relevant in a fast-changing global economy.

In closing, the Chartered Institute of Stockbrokers reiterated that achieving a $1 trillion economy is possible, but only if the country is willing to act decisively. That means moving from policy declarations to execution, from fragmented actions to coordinated strategies, and from short-term thinking to long-term planning. According to the Institute, capital formation is not just a financial exercise; it is a national development strategy that must be embraced at all levels.

As Nigeria continues to grapple with inflation, unemployment, and a depreciating currency, the message from the nation’s stockbrokers is clear: the path to prosperity lies in building strong institutions, empowering industry, and unlocking the full potential of the capital market.