AIHN President Calls for Redirecting Idle Capital into Regulated Investments to Curb Ponzi Scheme Growth
AIHN President Calls for Redirecting Idle Capital into Regulated Investments to Curb Ponzi Scheme
The Association of Issuing Houses of Nigeria (AIHN) has called for a stronger redirection of idle domestic capital into regulated investment products, arguing that the proliferation of Ponzi schemes reflects a widening gap between available liquidity and credible investment channels. The position was presented in Lagos during the AIHN Annual Investment Banking and Awards Dinner, where industry leaders assessed market conditions and outlined priorities for strengthening investor protection and enhancing capital formation.
AIHN President, Kemi Awodein, stated that large pools of unutilised capital continue to migrate toward fraudulent schemes due to limited awareness of regulated instruments and a persistent search for above-market returns. She emphasised that issuing houses remain central to directing liquidity into productive segments of the economy, particularly as Nigeria undergoes extensive recapitalisation exercises across banking, insurance and pension sectors.
Awodein noted that the ongoing recapitalisation cycle has triggered a resurgence in equity transactions in 2024, supported by steady investor confidence despite macroeconomic pressures. She added that moderating interest rates are expected to spur additional corporate activity in the debt market as firms seek funding to stabilise operations and expand capacity.
Technology Driving Retail Market Expansion
The Chief Executive Officer of the Nigerian Exchange (NGX), Jude Chiemeka, highlighted technology as a catalyst for expanding retail investor participation. He reported that the number of active retail investors has risen from fewer than three hundred thousand to almost eight hundred and fifty thousand, driven by the growth of digital platforms such as NGX Invest.
Chiemeka explained that new securitisation initiatives and municipal bond programmes are poised to widen financing options for corporates, while offering retail investors safer and more diverse entry points into the capital market.
Macroeconomic Indicators Strengthening Investor Sentiment
Former AIHN President and Group Managing Director of Afrinvest, Dr Ike Chioke, provided an assessment of improving macroeconomic fundamentals, citing moderating inflation, lower interest rates and a more stable exchange rate environment as factors supporting renewed momentum in the equities market.
According to Chioke, the market capitalisation estimated at approximately ₦140 trillion and year-to-date gains nearing 50% reflect a strengthening investor appetite. He recommended that investors prioritise companies with strong fundamentals and monitor emerging sectors such as financial technology, infrastructure and other high-growth industries that continue to attract both domestic and international interest.
Lagos Government Reaffirms Support for Capital Market Growth
Representing Governor Babajide Sanwo-Olu, former Lagos State Commissioner for Finance, Abayomi Oluyomi, pledged the government’s continued support for initiatives that strengthen the state’s investment climate. He outlined plans to improve infrastructure, streamline transaction processes, and encourage the creation of investment instruments tailored to local market needs.
Oluyomi urged investors and issuing houses to prioritise funding for startups and sustainability-focused ventures, noting that such commitments are essential for stimulating inclusive growth and accelerating long-term economic development.
Conclusion
With idle capital continuing to expose Nigerians to high-risk, unregulated schemes, stakeholders across the investment ecosystem are amplifying calls for stronger financial literacy, deeper capital market participation, and more robust pathways for channelling domestic liquidity into regulated instruments. As macroeconomic conditions improve and technology broadens access, industry leaders expect Nigeria’s investment base to expand further provided that reforms continue to deepen transparency, strengthen investor protections, and support sustainable capital formation.
