Nigeria’s equities market is positioned for robust expansion in 2025, spurred by a stable foreign exchange landscape and declining inflation, according to Olatunde Amolegbe, Managing Director/CEO of Arthur Stevens Asset Management Limited.

Speaking at the 2024 economic review and 2025 Outlook of Capital Market organised by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos on Thursday, Amolegbe outlined critical drivers for the anticipated growth.

“A stable FX market or declining exchange rates will significantly bolster the equities market,” he stated, adding that improved foreign exchange dynamics could also lead to a reduction in inflation, creating a favorable climate for investors.

Amolegbe highlighted that a drop in inflation could prompt monetary authorities to ease interest rates, further enhancing market appeal. Additionally, the recapitalisation of banks—set to be largely completed by 2025 despite the 2026 deadline—will strengthen the financial sector’s capacity to drive economic growth.

Key developments such as potential listings from the Nigerian National Petroleum Company (NNPC) Limited and Dangote Refinery are projected to catalyze investor activity. Amolegbe also provided a positive outlook for the banking, industrial, and oil and gas sectors, citing deregulation and strategic expansions as growth enablers.

The agriculture sector stands to benefit from increased government investment and improved security, while Consumer Goods companies leveraging backward integration strategies and limited FX dependence, like Unilever, are expected to thrive.

Concluding his presentation, Amolegbe reiterated his firm’s commitment to data-driven strategies, emphasizing that the equities market’s performance reflects the broader economic optimism. “Our conservative investment approach prioritizes stocks with solid growth potential.

We are confident in delivering value to investors in the year ahead,” he affirmed. With these developments, Nigeria’s capital market is set to enter a pivotal phase, marking a significant step forward in the nation’s economic resurgence.