Economy
Coronation Securities Helps Clients Understand Real Returns After Inflation—Owadokun
Nigeria’s economy is in a transition phase—marked by ambitious reforms, rising inflation, and a shifting investor landscape. The country recorded a 4.6 per cent GDP growth in Q4 2024, with 2025 projections at 3.6 per cent, driven by exchange rate unification, fiscal reforms, and a more market-driven policy approach.
At the same time, inflation—at 22.97 per cent as of May 2025—remains a concern. The Naira, while stabilising, still presents FX-related risks. Despite these headwinds, investors are beginning to regain confidence, and market reforms are gradually unlocking opportunities, particularly for digital-first institutions focused on access, trust, and financial empowerment.
In this interview shared with Business Post, the deputy chief executive of Coronation Securities, Mr Segun Owadokun, highlighted how the firm is positioning itself and its clients for long-term growth, navigating uncertainty, and building leadership in Nigeria’s capital markets. It has been edited for clarity.
What strategies are you deploying to help clients preserve and grow wealth in a high-inflation environment?
Our strategy is focused on preserving real returns. We offer high-yield fixed income options like commercial papers and corporate bonds as well as strong equities with capital appreciation potential and consistent dividends. But more than just picking the right products, we help clients understand their real returns after inflation. We combine this with continuous investor education and active portfolio tracking, so clients stay nimble in a fast-moving market.
Has the unification of exchange rates influenced investor sentiment and portfolio strategy?
Absolutely. The FX unification has introduced more clarity and reduced the uncertainty that plagued investors for years. We’re already seeing renewed interest from foreign portfolio investors—this is key for liquidity and pricing efficiency. Clients can now manage currency risks more transparently, and that strengthens confidence. The FX reform is foundational—it’s building a more predictable investment environment.
What measures are in place to strengthen investor confidence during periods of economic uncertainty?
Investor confidence comes from consistency and clarity. At Coronation Securities, we provide timely insights, personalized advisory, and investor education. We run webinars, thought pieces, and send regular market updates that help clients understand the “why” behind our strategy. When clients feel informed and supported—even in volatility—they stay invested with confidence.
In what ways is Coronation Securities leveraging technology to enhance access and improve client engagement?
Technology is at the centre of how we engage. Our Coronation Wealth App and eBusiness Suite allow real-time trading, seamless onboarding, and full portfolio visibility from anywhere. We’ve also built a robust API hub that allows digital partners and aggregators to embed our services in their platforms—extending access to underserved audiences. As Nigeria’s digital-first capital markets platform, we’re rethinking access, efficiency, and scale.
Can you elaborate on your efforts to promote financial literacy, especially among retail and emerging investors?
We’re passionate about empowering informed investors. That’s why we launched the Coronation Investment Academy—a platform that simplifies financial concepts and helps new and seasoned investors build their knowledge base. We complement this with webinars, newsletters, articles, and partnerships with schools, youth groups, and regulators. For us, it’s about inclusion, empowerment, and building long-term investor confidence.
What advice does Coronation Securities provide to clients affected by infrastructure deficits and high operating costs?
We help clients, both businesses and individuals, stay resilient. For businesses, we recommend maintaining liquidity buffers, deploying capital into flexible, short-term fixed income instruments, and hedging where needed.
For individuals, we guide them toward conservative, yield-driven investments that protect capital and ensure flexibility. In volatile markets, agility and cash management are everything.
What strategies are being used to attract and engage younger Nigerians in wealth-building and investment?
At Coronation Securities, we have adopted a three-pronged approach to engage younger Nigerians in wealth creation, built around the philosophy of “Learn, Play, and Invest.” First, we launched the Coronation Investment Academy, an educational platform designed to bridge the knowledge gap by simplifying investment concepts and promoting financial literacy. Once users grasp the fundamentals, they transition to the Coronation Fantasy League App – a gamified, real-time simulation that allows them to build virtual investment portfolios using actual market data. It is a safe, engaging way to practice investing without risking real money. The final step is onboarding them onto the Coronation Wealth App, our fully digital investment platform that allows users to trade and invest seamlessly in the Nigerian capital market from anywhere. This ecosystem not only educates but also empowers young investors to take charge of their financial future in a fun, accessible, and practical way.
How are ESG principles reflected in your investment advisory and product development?
ESG is no longer a cliché – it is becoming central to how we approach investments. At Coronation Securities, we are gradually embedding ESG principles into our advisory process. We have started integrating ESG screening into our equity research and are actively guiding clients towards emerging opportunities like green bonds and sustainable finance instruments. While corporate governance has always been a key pillar in our analysis, we are now seeing growing investor interest in broader social and environmental factors, such as workplace diversity, product safety, and climate responsibility. Our clients increasingly want to align their portfolios with their values, and we are right there with them. For us, it is not just about financial returns anymore – it is about making a meaningful impact through smarter and more responsible investing.
What risk management practices help safeguard client portfolios amid current macroeconomic risks?
At Coronation Securities, we take a proactive and disciplined approach to risk management. Our dedicated risk and investment teams continuously monitor market dynamics, conduct regular stress testing, and adjust portfolio strategies to anticipate and respond to potential shocks. We emphasise diversification, real-time scenario analysis, and dynamic asset allocation to cushion against volatility. By staying ahead of economic trends and maintaining strong internal controls, we aim to ensure our clients’ portfolios remain resilient, even in volatile macroeconomic environments.
Could you share recent innovations tailored to today’s market challenges?
We’ve launched a Fixed Income Trading Desk to give clients access to high-yield, short-term products. Our digital platforms now feature tailored investment recommendations and thematic watchlists—helping clients act swiftly and strategically.
How does Coronation Securities navigate the evolving regulatory landscape to ensure compliance and investor protection?
We maintain direct engagement with regulators and run rigorous internal audits. Continuous training and transparent governance ensure we manage client assets with integrity and protect investors at all times. Our strong governance framework guarantees that client assets are managed with the highest level of integrity and transparency, safeguarding investor interests at all times.
Are there any strategic partnerships that Coronation Securities is leveraging to enhance product offerings or market reach? Absolutely. Our collaborations with fintechs and ecosystem players help us scale offerings, improve execution, and reach new segments. These partnerships keep us agile, innovative, and deeply connected across Nigeria’s financial landscape.
What is your outlook for Nigeria’s investment market over the next 3 to 5 years?
We’re optimistic. Economic reforms are gaining traction—fueling deeper market participation, diverse products, and foreign capital inflows. While fixed-income yields may normalize, equities in banking, telecoms, and FMCG will shine. Digital evolution will continue democratizing access for more Nigerians.
What practical advice would you offer to new and existing investors looking to capitalize on opportunities in Nigeria’s current economic environment?
Our advice is simple: Stay informed. Diversify. Think long term. Spread investments across sectors and work with trusted advisors like Coronation Securities. In a reforming economy, disciplined and research-based investing is the best way to unlock opportunity.
By Adedapo Adesanya
The National Pension Commission (PenCom) has defended its decision to allow Pension Fund Administrators (PFAs) to invest in the parent companies of their custodians, insisting that adequate safeguards are in place to protect contributors’ funds.
The director-general of the pension regulator, Ms Omolola Oloworaran, speaking on Tuesday during the Meet the Press Briefing at the Presidential Villa, Abuja, said the commission’s decision to relax the investment restriction followed a comprehensive risk assessment that found minimal conflict of interest.
She explained that under PenCom’s investment regulations, PFAs are only permitted to invest pension assets in carefully selected instruments that meet stringent criteria, including profitability, strong credit ratings and proven track records.
According to her, the commission regularly reviews its investment regulations, conducts routine examinations and spot checks on PFAs to ensure strict compliance with established risk management guidelines.
“PFAs cannot just go into the stock market and buy any kind of stock. There are strict guidelines. Companies must demonstrate profitability, have a proven track record and satisfy other criteria before pension funds can invest,” she said.
Ms Oloworaran noted that each PFA also operates under the oversight of a board, an investment committee and a risk management committee, providing additional layers of governance to safeguard contributors’ funds.
She said PenCom recently issued a circular allowing PFAs to invest in the parent companies of their custodians after determining that the potential conflict of interest was negligible.
The PenCom boss explained that the parent companies involved are largely Tier-1 banks, including First Bank, United Bank for Africa (UBA) and Zenith Bank, which she described as A-rated institutions with strong financial foundations.
She said the policy was intended to widen investment opportunities for pension funds without compromising safety.
Using Stanbic IBTC as an example, Ms Oloworaran explained that if its custodian is Zenith Bank, the previous restriction prevented the pension administrator from investing in Zenith Bank shares despite the bank’s strong performance.
“We reviewed the risks and any potential conflict of interest and found the risks to be very low. That is why we opened that investment window,” she said.
By Aduragbemi Omiyale
Analysts at Meristem Research have predicted that the inflation rate for June 2026 in Nigeria should marginally rise to 15.95 per cent on a year-on-year basis from the 15.93 per cent reported in May 2026.
The National Bureau of Statistics (NBS) is expected to release inflation numbers for last month later today, Wednesday, July 15, 2026.
In its report sighted by Business Post, Meristem Research said it expects inflationary pressures to re-emerge across key economies in the near term, as the re-escalation of the US-Iran conflict has reignited upward pressure on global oil prices.
It disclosed that this marks a sharp reversal from most of June, when the ceasefire between the two countries helped drive oil prices lower, raising expectations of some relief on the inflation front.
With conflicts now flaring up again, oil prices are likely to increase again, and the anticipated easing in energy-driven inflation may not materialise as broadly as earlier envisaged.
“Nonetheless, some relief is likely from the food segment, where robust supply conditions across major producing regions and softening demand should continue to ease food price pressures,” it stated.
The team also explained that it projected a 15.95 per cent inflation rate because of the lingering effects of persistent food price pressures.
“However, we expect core inflation to moderate as the sharp reversal in energy prices begins to filter through to transportation, distribution, and other energy-related costs, easing underlying price pressures.
“On a month-on-month basis, the combined effect of lower petrol prices, a relatively stable Naira, and the gradual pass-through of reduced energy costs across the supply chain should exert further downward pressure on inflation.
“Based on our assessment, food inflation is expected to remain the key swing factor, as seasonal pre-harvest supply constraints are likely to offset some of the gains from lower logistics costs,” it said.
By Adedapo Adesanya
The duo of Central Securities Clearing System (CSCS) Plc and Afriland Properties Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.61 per cent on Tuesday, July 14.
CSCS Plc saw its stock value drop N9.08 to close at N82.40 per share compared with the preceding session’s N91.48 per share, and Afriland Properties Plc slid by 17 Kobo to sell at N15.00 per unit versus N15.70 per unit.
The losses recorded by the two securities pulled back the market capitalisation by N41.64 billion to N2.546 trillion from N2.587 trillion, and cracked the NASD Security Index (NSI) by 69.36 points to 4,242.31 points from 4,311.67 points.
It was observed that the exchange witnessed two price advancers during the session, led by FrieslandCampina Wamco Nigeria Plc, which gained N1.37 to end at N151.37 per share compared with the previous day’s N150.00 per share, and Food Concepts Plc chalked up 5 Kobo to settle at N2.50 per unit versus N2.45 per unit.
The volume of securities traded by market participants surged by 50.7 per cent to 13.7 million units from the previous 9.1 million units, while the value of securities went down by 79.7 per cent to N65.2 million from N320.4 million, and the number of deals crashed by 3.6 per cent to 27 deals from the previous session’s 28 deals.
At the close of transactions, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc, which exchanged 2.3 billion units valued at N6.5 billion, and CSCS Plc with 73.9 million units transacted for N5.2 billion.
GNI Plc also closed the trading day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
