Nigeria’s capital market has surged past N125 trillion in market capitalisation, with Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, linking the surge to ongoing fiscal reforms aimed at strengthening investor confidence and stabilising the economy.
Speaking at the 3rd PUU Capital Market Colloquium on Monday in Abuja, Oyedele described the ongoing reforms as one of the most consequential fiscal resets in Nigeria’s modern history, noting that they are designed to build trust in the economy, stimulate inclusive growth, and foster a more investment-friendly environment.
According to him, the impact of these reforms is already visible on the trading floor of the Nigerian Exchange Group (NGX). As of mid-February 2026, the All-Share Index recorded a 25.3% return within the first seven weeks of the year, while market capitalisation crossed the psychological N100 trillion mark in January before reaching an all-time high of over ₦125 trillion by February 20.
Oyedele linked the strong performance to structural reforms that had improved transparency, enhanced foreign exchange liquidity, and provided greater predictability in tax administration.
“The results of these policies are already evident on the trading floor. As of mid-February 2026, the Nigerian Stock Exchange (NGX) showed exceptional performance with the All-Share Index (ASI) recording a robust 25.3% return in just the first seven weeks of the year with market capitalisation crossing the psychological N100 trillion mark in January, and reaching an all-time high of over N125 trillion by 20 February 2026.
“Confidence continues to grow from both foreign and domestic investors, driven by the structural reforms and strong performance in key sectors like energy, industrial and financial services,” he said
He explained that historically, Nigeria’s tax system had been fragmented and costly to comply with, discouraging investment and limiting efficient capital allocation.
“To address this, the new tax framework provides a unified, transparent and predictable environment where businesses can plan effectively and investors can price risk appropriately,” he said.
He outlined several provisions in the new tax laws aimed at deepening the capital market. These include a full Capital Gains Tax exemption on proceeds reinvested in Nigerian shares within the same year, higher tax-exempt thresholds for small and retail investors, and a legal framework to reduce corporate income tax from 30% to 25%.
Other measures include the removal and reduction of certain transaction taxes, such as stamp duties on share transfers and withholding tax on bonus shares, as well as provisions that protect foreign investors from being taxed on naira gains without accounting for foreign exchange losses.
Oyedele said the steps would eliminate tax drag, encourage portfolio rebalancing, boost market liquidity, and incentivise patient capital within the domestic economy.
He emphasised that the ultimate goal is not merely to celebrate rising market indices but to translate financial market growth into tangible economic development, including financing for infrastructure, factories, innovation and job creation.
Also speaking Uche Uwaleke, Professor of Capital Market, Nasarawa State University, called for a broader vision of Africa-wide economic integration anchored on infrastructure, innovation and strong capital markets.
Delivering a lecture entitled “Future-proofing Africa-wide economic integration: Infrastructure, Innovation, and Capital Markets,” Uwaleke said Africa stands at a defining moment, particularly with the opportunities presented by the African Continental Free Trade Area.
He stressed that integration must be deliberately designed to endure, supported by modern infrastructure, digital connectivity, harmonised regulations and deep, interconnected capital markets capable of mobilising long-term funds across borders.
“Infrastructure is the first pillar of this future. No economy integrates on paper alone. Trade agreements without roads, railways, ports, energy systems, and digital connectivity are aspirations without arteries. For Africa to trade efficiently within itself, goods must move seamlessly across borders. Power must be reliable. Broadband must be accessible.
“Logistics must be efficient. The infrastructure we build must not only meet present demands but anticipate future scale. It must support industrialization, enable regional value chains, and facilitate digital commerce,” he said
According to him, policy consistency, macroeconomic stability and credible institutions remain critical to sustaining investor confidence, noting that markets ultimately run on trust.
“For Africa-wide integration to succeed, our capital markets must deepen, broaden, and connect. Domestic savings must be mobilized more effectively. Pension funds, insurance assets, sovereign wealth funds, and retail investors must be channeled toward productive investments.
“Cross-border listing frameworks must be strengthened. Regulatory cooperation among African securities commissions must be enhanced. Settlement systems must be interoperable. Transparency and investor protection must be non-negotiable.
“We must also confront the reality that macroeconomic instability undermines capital market development. Exchange rate volatility, inflationary pressures, and fiscal imbalances discourage long-term investment. Therefore, resilient monetary and fiscal systems remain foundational. Economic integration cannot thrive in an environment of persistent instability. It requires policy coordination, fiscal discipline, and credible institutions,” Uwaleke said.
