AIHN Symposium Pushes Faster Capital Market Reforms and Wider SME Financing

Financial market professionals have called for faster regulatory reform and broader access to long-term capital for Nigerian small and medium-sized businesses as technology reshapes the country's investment landscape.

The recommendations were made at the Association of Issuing Houses of Nigeria's 30th anniversary symposium in Lagos on Tuesday, October 6, 2026. Discussions focused on how regulation, corporate governance, digitalisation and financing structures could support further development of the capital market.

Afrinvest West Africa Group Managing Director Ike Chioke said small businesses need stronger support to become suitable candidates for long-term investment. He identified formal business structures, reliable accounting systems and appropriate corporate governance as areas that could help SMEs become better prepared to approach the capital market.

Chioke also argued for fiscal and regulatory incentives that could make formalisation more attractive to entrepreneurs, particularly businesses involved in agriculture and local manufacturing.

He said current market conditions could offer companies an opportunity to raise capital, pointing to gains in Nigerian equities alongside easing inflation and a stronger naira. Businesses seeking medium-sized financing, he said, could consider transactions between ₦10bn and ₦50bn, while larger issuers could potentially attract both local-currency and foreign-currency investment.

Chioke also encouraged companies to look beyond ordinary equity issuance. Debt instruments, preference shares and other financing structures, he said, can provide alternative ways to raise funds depending on a company's requirements.

Deputy Managing Director of Udo Udoma & Belo-Osagie, Ozofu 'Latunde Ogiemudia, focused on the pace of legislative change. She noted that 18 years separated the Investments and Securities Act of 2007 from the 2025 legislation and argued that future regulatory updates should move more quickly as technology develops.

Ogiemudia said advances including artificial intelligence and digital investment platforms mean regulation must continue evolving. She also stressed that companies should treat compliance as an ongoing responsibility rather than something addressed only when preparing to raise money.

FundQuest Financial Services Managing Director Abiodun Akinjayeju highlighted stronger capital requirements for market operators and the demutualisation of the Nigerian Exchange among changes that have strengthened the market. He linked stronger balance sheets and improved governance structures to the ability of operators to absorb shocks, invest in technology and handle larger transactions.

The Securities and Exchange Commission's Deputy Director and Head of Securities Offering, Adama Babadoko, said innovation and oversight can develop together. She pointed to tools such as regulatory sandboxes and technology-based supervision as mechanisms for testing eligible products while maintaining investor protection, market integrity and financial stability.

AIHN President and Chapel Hill Denham Managing Director of Investment Banking Kemi Awodein said the association's anniversary provided an opportunity to review three decades of work by issuing houses in areas including public offers, rights issues, debt transactions, mergers and acquisitions.

Awodein called for a capital market that provides wider financing opportunities for SMEs, infrastructure and emerging industries while adapting to fintech, sustainable finance, environmental and social considerations and artificial intelligence.

SEC Director-General Emomotimi Agama, in a keynote delivered on his behalf by senior SEC official Tony Iloka, said technology, sustainability and stronger links with regional and international markets would influence the next stage of the sector's development. He identified areas including digital assets, tokenisation, open data and artificial intelligence as developments already changing how securities are issued, traded, settled and supervised.