The Managing Director and Chief Executive Officer of Arthur Stevens Asset Management Limited, Olatunde Amolegbe, has said that Nigeria’s capital market has been one of the few bright spots in the country’s economic landscape, despite the hardship many citizens are currently facing due to the federal government’s sweeping economic reforms.
In an interview with our correspondent on Sunday, Amolegbe shared his assessment of President Bola Ahmed Tinubu’s administration after two years in office. He stated that while the pace and intensity of reforms under Tinubu’s leadership may appear harsh, they were necessary to avert a full-scale economic collapse.
“It has been two years of aggressive reform of the economy through various policy changes that some will call bold and others will call overly aggressive. The president has acted like we are running out of time as a country, and all the medicine needed to be taken at once to save our economic lives,” Amolegbe said.
He acknowledged that while some economic experts have advocated for a more gradual and sequenced implementation of reforms, it was clear that the previous state of the economy left no room for delay. “It’s clear the economy was on life support and on the brink of collapse before he came in,” he added.
Amolegbe pointed to major policy shifts such as the floating of the naira, removal of fuel and electricity subsidies, and introduction of comprehensive tax reforms as major steps that have helped to stabilise government finances and boost investor confidence.
He explained that these reforms were well-received by investors, who responded positively, especially in the equities market. “Policies such as the floating of the naira, removal of fuel and electricity subsidies, and efforts at comprehensive tax reforms were read as positively accretive to the finances of the country, and the stock market responded positively,” he said.
According to him, the Nigerian Exchange’s All Share Index, which tracks market performance, has risen by more than 40 per cent since the current administration took office.
“We have also seen a significant return of foreign portfolio investors to our market in the last two years, and more companies are approaching the market to raise capital,” Amolegbe added.
He also highlighted the role of the Central Bank of Nigeria (CBN)’s directive for banks to recapitalise as another factor boosting liquidity in the capital market and deepening investor interest in equities.
Amolegbe noted that the federal government has been more active in the local fixed-income market, raising capital to bridge budget and infrastructure deficits. “Nigeria issued its first US Dollar Domestic Bond and also issued its first Eurobond in over 10 years,” he said.
He praised President Tinubu for recently signing the new Investment and Securities Act into law, saying it has the potential to transform the country’s capital market in the years to come.
However, the asset management boss cautioned that the government must not rest on its laurels. He urged greater efforts to address challenges directly affecting production and households.
“For instance, the pace of privatisation and commercialisation of non-performing public assets could be increased significantly to unlock their value,” he said. “Also, efforts to lower the operational and finance costs of companies operating within the economy need to be placed at the front burner in order to increase production and reduce unemployment.”
He also called for urgent attention to critical infrastructure gaps, particularly power supply and insecurity, which continue to hinder food production, industrial output, and general economic stability.
While he maintained that the capital market is showing strong performance indicators, Amolegbe admitted that Nigerians are enduring serious hardship. “The fact is that these reforms, while necessary, have involved the citizenry having to bear significant pains, such as the ongoing cost-of-living crisis,” he said.
He concluded by urging the government to intensify its efforts at easing the burden on citizens, even as the benefits of the reforms begin to materialise in the medium to long term.
