The Nigerian capital market has witnessed a significant boost in liquidity, thanks to the growing presence of mid-level investors, according to Olatunde Amolegbe, Managing Director and Chief Executive Officer of Arthur Stevens Asset Management Limited.
Speaking recently at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2024 Market Review and 2025 Projection event in Lagos, Amolegbe highlighted the critical role these investors play in injecting liquidity into the market.
He noted that mid-level investors are more risk-tolerant than traditional participants and are seeking to take strategic stakes in companies to drive internal changes and unlock hidden value.
“These emerging investors are willing to seek capital not just for trading but also to secure a foothold in companies where they can influence operations and unlock value that others may have overlooked,” Amolegbe explained.
He cited the recent surge in activity in previously dormant stocks as evidence of this trend. For instance, he pointed to the case of Tantalizers Plc, whose share price skyrocketed by 336% in 2024 after years of inactivity.
Amolegbe emphasized that the participation of diverse investor groups is essential for any capital market to be truly liquid.
The increasing interest of mid-level investors has brought a much-needed boost to the Nigerian capital market, creating liquidity in previously stagnant stocks and enabling more dynamic trading activities.
“These investors are welcome. While some might say they are taking risks, I believe they are instrumental in creating liquidity in the marketplace. Often, they bring about the changes necessary for companies that have been stagnant for a long time to thrive,” he added.
The Nigerian capital market, which has witnessed significant evolution in investment patterns, is poised to benefit from this shift as it seeks to attract more diverse participation and enhance market activity.
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