Nigeria’s capital market needs stronger domestic participation, credible institutions and improved investor confidence to sustain growth and attract more foreign capital in the second half of 2026, the Managing Director of Coronation Asset Management, Aigbovbioise Aig-Imoukhuede, has said.

Speaking on the theme: ‘Positioning for the Second Half: Market Outlook, Capital Flows and Investment Opportunities’, at the 2026 Coronation Media Parley, organised in collaboration with the Capital Market Correspondents Association of Nigeria (CAMCAN), at the weekend, he said attracting capital was only one part of the challenge, noting that retaining such capital would depend on the confidence investors had in the institutions receiving and deploying their funds.

He said the quality of institutions, corporate governance and transparency would therefore remain important to the long-term development of the capital market and sustainable wealth creation.

He noted that the long-term strength of the market would depend not only on the volume of funds attracted but also on the quality and credibility of institutions receiving and deploying the capital.

He said the strong performance should be viewed against the broader structural changes taking place in the Nigerian capital market, particularly the growing contribution of domestic investors.

According to him, the market rally had been driven mainly by domestic capital rather than foreign portfolio investment, reflecting the increasing role of domestic institutional and retail investors in supporting market activity.

He noted that the changing composition of market participation was an important sign of resilience, particularly as domestic investors increasingly provide the funds required to sustain market activity.

The NGX All-Share Index gained 57 per cent by the end of July, while total market capitalisation rose by N58.9 trillion to N158.3 trillion in the first seven months of the year.

Aig-Imoukhuede said the performance reflected a major shift in the structure of the market, with domestic investors providing most of the capital behind the rally.

He said the growing participation of domestic institutional and retail investors had strengthened the market’s foundation, while the decline in the relative contribution of foreign investors should not be seen as a loss of international interest in Nigeria.

Foreign investors accounted for 12.1 per cent of NGX transaction value as of June 2026, compared with 27.1 per cent a year earlier. At the same time, domestic participation increased significantly, supported by pension funds and other institutional investors following changes in investment thresholds.

The development, he said, showed that the market was becoming increasingly supported by domestic savings, which could improve its resilience over time.

However, Aig-Imoukhuede said the next phase of the market would require greater attention to institutional credibility, transparency and investor confidence.

He said attracting capital was only one part of the challenge, as retaining such capital would depend on the confidence investors had in the institutions receiving and deploying their funds.

He said the quality of institutions, corporate governance and transparency would therefore remain important to the long-term development of the capital market and sustainable wealth creation.

Aig-Imoukhuede further urged investors to focus on opportunities that could benefit from developments in the market rather than wait for complete certainty before positioning.

He said the market had already recorded substantial gains and that investors were unlikely to continue benefiting from indiscriminate exposure to equities.

For the second half of 2026, he said investors were expected to focus on quality companies with strong earnings growth, sound governance, adequate liquidity and clear prospects of benefiting from increased domestic and foreign participation.