Lagos: Some capital experts have expressed optimism that high yield Federal Government securities and banking recapitalisation inflow will attract investment and sustain economic growth in the second half (H2) of 2025.
According to News Agency of Nigeria, the experts shared these insights during a webinar titled ‘Mid-Year 2025 Macroeconomic Review and Outlook for H2 2025,’ organized by Arthur Steven Asset Management Ltd. Prof. Uche Uwaleke, President of the Capital Market Academics of Nigeria, emphasized the importance of using foreign exchange-hedged instruments or eurobond exposures to mitigate naira risk. He further suggested that deploying equity exposure early would help sustain growth in the latter half of the year.
Uwaleke proposed a combination of local instruments, both equity and fixed income, to achieve a balance of yield and growth, which could bolster the country’s economic performance in H2 2025. He noted that a balanced portfolio comprising high-yield fixed income, selective equities, and currency risk mitigation would strategically position investors in Nigeria’s mid-year context.
Despite global challenges such as tariffs, trade uncertainty, and geopolitical tensions slowing growth and influencing risk sentiment in the first half of the year, Uwaleke highlighted Nigeria’s resilience. The country experienced moderate GDP growth, easing inflation, and structural reform momentum, all of which supported a revival in the capital market. He maintained a cautiously optimistic outlook for H2 2025, with expectations of low but stable global growth and improving inflation dynamics. Uwaleke asserted that resilience amidst reform and risk would define Nigeria’s capital market success in the latter half of 2025.
Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management Ltd., reflected on the recovery, policy recalibration, and renewed investor confidence observed in the first half of 2025, both globally and domestically. He described the country’s macroeconomic environment as cautiously optimistic and noted that the mid-year review provided valuable insights into key macroeconomic drivers, sector-specific performance, and market expectations. These insights, he said, would assist investors and policymakers in repositioning strategies for the evolving landscape.
Amolegbe reported a rise in market capitalisation from N62.76 trillion to N75.95 trillion, with select consumer and industrial goods stocks delivering triple-digit returns. He observed that the fixed income market remained attractive due to elevated yields, although primary market stop rates trended lower as inflation moderated.
He explained that commercial paper and bond issuances slowed because of high borrowing costs and cautious corporate sentiment. Amolegbe anticipated further monetary easing, improved fiscal clarity following the 2025 Finance Act, and a continuation of investor-friendly reforms. He projected a bullish outlook for the Nigerian Exchange Group (NGX), with an expected full-year return of 39 percent, driven by Q3/Q4 earnings momentum, banking recapitalisation flows, and anticipated new listings.
