NGX Capital Markets Conference: Boosting private equity investments in Nigeria’s capital market

The CEO of Pension Fund Operators Association of Nigeria, Oguche Agudah, stressed the importance of empowering local investors and developing private equity as an asset class in Nigeria during an interview on CNBC Africa. Agudah emphasized the role of institutional investors in driving significant investments that could address crucial issues like infrastructure development in the country. He highlighted the need for strategic partnerships between regional investors and the stock exchange to create new products that cater to the needs of social investors while ensuring liquidity, returns, safety, and transparency. Agudah also underscored the necessity of expanding the range of products available in the market to attract more institutional investors and deepen the market's overall capacity. In discussing the evolution of product development, he pointed out the untapped potential in trading asset-backed securities and mortgage-backed securities. Agudah outlined the importance of policy frameworks and regulatory support to facilitate the trading of such products and stressed the need for collaborative efforts to shape and implement effective market policies. As the deadline for recapitalizing the pension fund operators approaches, Agudah highlighted the industry's focus on meeting regulatory requirements through various strategies, including mergers and acquisitions, private placements, and securing offshore funds. He predicted that the recapitalization process would predominantly rely on private capital infusion, with limited direct listings of entities on the stock exchange in the near future. Agudah also noted the ongoing technological advancements in the pension industry, emphasizing the crucial role of tech innovations in driving operational efficiency, cost reduction, and customer service enhancement. He anticipated a continued focus on leveraging technology to streamline processes, lower costs, and improve overall service delivery in the industry. Overall, Agudah's insights shed light on the potential for boosting private equity investments in Nigeria's capital market through strategic partnerships, product diversification, regulatory support, and technological advancements.