Fragmentation stunts Nigerian capital markets

Author: Lizzie Meager | Published: 6 Aug 2015

Nigeria’s capital markets need consolidated oversight and better pricing to foster growth, according to a report authored by the UK Foreign Office’s Emerging Capital Markets Taskforce (ECMT).

While the country’s financial markets have no shortage of regulators, these are sector-specific; the National Pension Commission  being one example.

This fragmented approach subjects market participants to multiple layers of regulation, said Anuoluwapo Balogun, head of banking and finance at Olaniwun Ajayi’s Lagos office.

"There is inconsistency between the requirements of various regulators, and this causes inefficiency, hindering the development of capital markets," she said. "The market remains concentrated in existing stocks."

The 91-page report identifies four main areas restricting growth in the emerging market’s debt and equity markets:...