Stockbrokers Back Linking of African Exchanges Amid Capital Market’s 33% GDP Contribution

The Association of Securities Dealing Houses of Nigeria (ASHON) has thrown its weight behind the African Exchanges Linkage Project (AELP), as the Nigeria’s capital market contributed 33 per cent to the country’s Gross Domestic Product (GDP).

The Association said the initiative will accelerate cross-border securities trading, deepen capital market integration and unlock fresh investment opportunities across the continent.

Chairman of ASHON, Sehinde Adenagbe stated this at the AELP Broker Activation Webinar, where he urged African capital market operators and regulators to strengthen collaboration to realise the full benefits of a unified continental securities market.

Adenagbe said the webinar came at a time when Nigeria’s capital market was posting impressive performance, noting that the market now contributes about 33 per cent to the country’s Gross Domestic Product (GDP) and has become a key barometer for assessing Nigeria’s economic prospects.

According to him, the migration to the T+1 trade settlement cycle has significantly improved market liquidity, efficiency and investor confidence, while Nigeria has emerged as the world’s best-performing stock market at mid-year 2026, outperforming South Korea’s Kospi Index.

He added that the Investment and Securities Act (ISA) 2025 has strengthened the legal and regulatory framework by enhancing investor protection, improving market efficiency and positioning Nigeria as one of Africa’s leading investment destinations.

“The African Exchanges Linkage Project presents a unique opportunity to unlock investment flows and promote regional economic development,” Adenagbe said.

He identified efficient cross-border settlement systems, regulatory cooperation, robust technology infrastructure, cybersecurity, strong operational frameworks among brokers and sound corporate governance as critical success factors for the initiative.

He also called for easier movement of market participants across African countries to foster business collaboration and regional integration.

He stated that many Nigerian equities remain undervalued despite the market’s strong performance, presenting attractive investment opportunities.

He added that investors also have access to high-yielding equities, bonds and exchange-traded funds (ETFs), while expected strategic listings, including Dangote Refinery and Petrochemicals, would further broaden the market and better reflect the Nigerian economy.

Adenagbe also said continued development of derivatives, commodities and alternative investment products would expand investment choices and deepen the market.

He reaffirmed ASHON’s commitment to supporting both the AELP and the African Stockbrokers and Securities Dealers Association (ASSDA), expressing optimism that African stockbrokers would soon trade seamlessly across borders under harmonised regulations and faster settlement systems.

“We look forward to a time when stockbrokers across Africa can trade seamlessly and efficiently, settlement takes place without delay, regulatory frameworks are harmonised, and a unified African passport facilitates the free movement of market participants across the continent,” he said.