Key points
- AVA Capital says integrity concerns and poor financial literacy are slowing Nigeria’s capital market growth.
- The company says stronger due diligence and investor education are needed to boost confidence and attract capital.
- AVA says its recent NGX main board listing reinforces its commitment to transparency and corporate governance.
Main story
AVA Capital Plc has identified integrity concerns and inadequate capital market literacy as major obstacles to the growth of Nigeria’s financial and capital market.
The Managing Director of the company, Mr Olukayode Fadahunsi, made the remarks during a media briefing on Tuesday in Lagos.
He said sustaining investor confidence depends on matching credible investment opportunities with available capital, arguing that the biggest threat to the market is not a shortage of funds but investments flowing into unworthy ventures.
Fadahunsi said businesses with genuine investment potential could still struggle to attract funding if they lacked a proper understanding of how the capital market operates.
He stressed the need to improve financial and capital market literacy across the country, noting that Nigeria’s education curriculum has not kept pace with developments in global finance, artificial intelligence and emerging technologies.
According to him, stronger financial education would equip individuals and businesses with the knowledge needed to access investment opportunities and contribute to economic growth.
Fadahunsi also highlighted the role of regulators in maintaining market stability but said investment firms have a greater responsibility to conduct rigorous due diligence before recommending investment opportunities to investors.
He warned that fraudulent or poorly structured investments undermine investor confidence and reduce capital flows to viable businesses.
Speaking on the company’s strategy, Fadahunsi attributed AVA Capital’s growth to innovation and investment in young professionals through its graduate trainee programme, which recruits between 30 and 40 graduates annually.
He said many of the company’s departments are now led by employees who joined through the programme, adding that combining youthful innovation with industry experience has strengthened the company’s operations.
Also speaking, Chairman of AVA Capital Plc, Dr Adeyinka Adedeji, described the company’s recent listing on the Nigerian Exchange (NGX) main board as a significant milestone.
He said the listing reflects the company’s commitment to transparency, accountability and global corporate governance standards while creating long-term value for shareholders and other stakeholders.
Adedeji also expressed confidence in the long-term prospects of Nigeria’s capital market as a driver of economic growth.
The issues
Investor confidence remains a key factor in the growth of Nigeria’s capital market. Weak due diligence, poor financial literacy and governance concerns can discourage investment, while stronger transparency and investor education can improve market participation and capital mobilisation.
What’s being said
“The greatest risk in the capital market is integrity. Capital must freely meet genuine opportunities, but those opportunities must also speak the language of capital.” — Olukayode Fadahunsi, Managing Director, AVA Capital Plc.
“We are committed to building a resilient and well-governed institution that will create sustainable value for shareholders and stakeholders.” — Adeyinka Adedeji, Chairman, AVA Capital Plc.
What’s next
AVA Capital plans to continue investing in talent development and corporate governance while advocating stronger financial literacy and improved due diligence to support deeper participation in Nigeria’s capital market.
Bottom line
AVA Capital believes improving market integrity, strengthening investor education and maintaining strong corporate governance are essential to attracting long-term investment and unlocking the full potential of Nigeria’s capital market.
