Nigeria must transform its capital market into a digitally driven investment ecosystem capable of mobilising long-term domestic and international capital, Professor Godwin Oyedokun has said.

Oyedokun, a professor of accounting and financial management at Lead City University, Ibadan, said limited retail participation, infrastructure deficits, financial exclusion, governance weaknesses and technology risks were constraining the market’s capacity to create and distribute wealth.

He spoke while delivering the 19th Fellowship Inaugural Lecture of the Capital Market Academics of Nigeria (CMAN), titled, “Growing Opportunities through Digital Wealth, Innovation and Nigeria’s Capital Market Transformation.”

He unveiled the Godwin Capital Market Framework, a six-pillar model focused on governance and good regulation, innovation, digital wealth creation, wealth inclusion and market deepening, intelligent infrastructure and investment ecosystem, and national economic transformation.

Oyedokun said advances in technology and financial innovation could lower transaction costs, improve market efficiency, widen financial inclusion and create new channels for wealth creation.

He advocated greater deployment of Regulatory Technology (RegTech) and Supervisory Technology (SupTech) to strengthen compliance, regulatory oversight and market surveillance.

According to him, artificial intelligence, machine learning and data analytics could help regulators automate compliance monitoring, improve risk assessment and detect suspicious activities and potential misconduct.

He, however, stressed that increased digital participation must be matched by stronger transparency, disclosure requirements, investor protection and market discipline.

The framework identifies opportunities in fintech, artificial intelligence, blockchain, digital securities, tokenisation, crowdfunding, venture capital, private equity, green finance and Islamic finance.

Oyedokun also called for greater participation by households, entrepreneurs and smaller businesses, saying technology could lower barriers to capital-market participation.

He said software, data, intellectual property, artificial intelligence, digital platforms and technology-enabled enterprises were increasingly becoming sources of economic value and potential areas for capital-market financing.

Oyedokun said implementation would require credible regulation, reliable digital infrastructure, investor protection and collaboration among regulators, financial institutions, universities, technology companies and start-ups.