Economy
Technology has Restored Confidence in Nigerian Capital Market—Stockbroker
By Dipo Olowookere
When investors do not have confidence in a country’s capital market, then there is a big danger because the market segment is one of the lifelines of any economy.
In order not to put the Nigerian economy in crisis, the Nigerian Stock Exchange (NSE), under the leadership of Mr Oscar Onyema, has come up with different initiatives.
One of these is the use of technology to run a transparent stock exchange, which has been commended by stakeholders in the industry.
At the moment, it is difficult for stockbrokers to trade shares of clients without first getting the approval of the owner.
In an interview with Vanguard, a Stockbroker and Chief Relationship Officer with Foresight Securities & Investment Limited, Mr Charles Fakrogha, said the use of technology by the NSE has helped to restore confidence investors have in the country’s capital market.
According to him, technology has allowed stockbrokers give their clients codes so as to validate trade orders.
He said this smart trading allow customers use their smart phone to trade anywhere in the world, explaining that it means they can put in their order, but before those trading orders will get to the trading engine, the stockbroker who gave the client the access must have validated the order. So, it is also making business easy for the capital market.
“Operators can now reach as many of their clients as possible unlike before when they have to manually put in the order.
“So, technology has done a lot in terms of enhancing the market. At the same time, it also has a flip side. Technology has also posed problem in terms of hacking, in terms of cyber-crime, but the measures put in place by the information technology department of the stock exchange and constant training and re-training of operators, to ensure that their system is fire proof, has helped in plugging the leakages.”
Furthermore, Mr Fakrogha said, “All the stockbroking firms have enhanced their Information Technology (IT) capability; most firms now trade remote. Most firms now have what is called Order Management System (OMS), where clients can put in their orders from any part of the world and those orders will get to the trading engine of the stock exchange, of course, validated by the trader before they get to the trading engine.”
Commenting on capital market infractions, the renowned stockbroker said, “Infraction has nothing to do with technology; it is integrity. However, technology has a role to play. There is a system at the Central Securities Clearing System (CSCS) initiated by the stock exchange.
“If I buy or sell for a client, the client gets automatic alert. That is what is called Trade Alert. If I as a stockbroker, I buy or sell for a client, he/she receives trade alert on his/her phone. So, if the client sees a trade on his portfolio that a broker has sold and did not give the mandate.
“Of course, it is obviously, an unauthorized sale. It is left for the client to report the transaction to the appropriate authorities. If the client did not do anything, of course, the stock exchange will not know.
“So, when a client is opening their trading account, they must insist that they will like to have a trade alert. The trade alert is now made compulsory. As soon as a client fills the form and you send it to the CSCS, automatically, the investor will be on trade alert.
“It is a very good innovation and it has been on for a long time. So, when the unauthorized sale takes place, the investors can make a report and where the broker cannot give reasonable explanation, the investor can take it up at the level of the Nigerian Stock Exchange and the problem will be resolved.
“As for me, I think technology has played a major role in terms of checking unauthorized sale, unlike in the past when a broker will sell and the client will not get any notice until one or two years after.”
On the direct cash payment to customers introduced by regulators, Mr Fakrogha said, “With direct cash settlement, if I sell shares for a client, all the proceeds will not come to my account. It is only my commission that comes to me while the proceeds go to the client.
“For us, that is a major breakthrough in terms of technology. This has come to also eliminate market infraction and this is major breakthrough on how technology has assisted to bring sanity in the capital market. It will interest you to know that Foresight is one of the stockbroking firms at the forefront of implementing the stock exchange’s direct cash settlement initiative.”
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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