Tinubu’s Forex Reforms Attract Unprecedented Investments, Fueling Market Growth – NGX Chairman

By Peter Uwumarogie

Gombe, Dec. 20, 2025 (NAN) – The foreign exchange (forex) reforms spearheaded by President Bola Tinubu’s administration have acted as a primary catalyst for an unprecedented surge of investment into Nigeria, according to Dr. Umaru Kwairanga, Group Chairman of the Nigerian Exchange Group (NGX).

In an exclusive interview with the News Agency of Nigeria (NAN) in Gombe, Kwairanga framed the reforms as a “painful but necessary pathway” to long-term economic prosperity. He argued that by unifying the exchange rate and allowing it to find a more realistic market-driven level, the government has significantly boosted investor confidence, directly attracting stronger foreign direct investment (FDI) inflows.

“The initial devaluation was a bitter pill,” Kwairanga acknowledged, “but it was essential medicine. It eliminated the arbitrage and opacity that deterred serious, long-term capital. Investors now have greater clarity and trust that they can repatriate funds at a transparent rate, which is fundamental for investment decisions.”

Tangible Gains and Market Transformation

The NGX Chairman outlined specific, measurable outcomes from the policy shift over the past two years:

• Explosive Market Capitalization Growth: “When President Tinubu assumed office, our total market capitalization was below N30 trillion. Today, we stand at approximately N97 trillion—a more than threefold increase. We have doubled the market cap in 2025 alone, and I am confident we will triple that feat in 2026.”
• Corporate Recovery and Listing Boom: He noted that companies which suffered massive accounting losses due to prior currency devaluation have “recovered and moved on,” now declaring strong profits and dividends. Furthermore, the improved business environment has spurred a wave of new listings on the exchange.
• Forex Accessibility: “Today, no credible organisation is running helter-skelter looking for foreign exchange. The reforms have eased access to forex for legitimate business needs, supporting growth and job creation,” Kwairanga stated.

Broader Macroeconomic Impact

Kwairanga connected the forex reforms to wider positive economic indicators, suggesting a virtuous cycle is taking hold. He reported that interest rates have begun to decline, while Nigeria’s foreign exchange reserves have grown to a 10-year high. This reserve buildup provides a crucial buffer for the currency and the economy. He also pointed to a reduction in inflation, attributing it to the stabilizing effects of the reforms.

“The gains are evident in the continued strengthening of the Naira and our reduced reliance on the Central Bank of Nigeria (CBN) as the sole supplier of foreign currency. A more market-driven system with robust private sector participation is emerging,” he explained.

Democratizing Investment Through Technology

A critical, yet often overlooked, aspect of the growth highlighted by Kwairanga is the role of financial technology (fintech). Part of the reform agenda involved leveraging technology to simplify access to the capital market.

“We have seen the number of retail investors on the NGX skyrocket from less than one million at the start of this administration to over six million today,” he revealed. “Analysis shows about 70% of these new investors are youths under 30. This signifies a profound demographic shift, creating a new generation of capital market participants who are digitally savvy and engaged with the economy’s growth story.”

A Call for Sustained Support

While celebrating the progress, the NGX Chairman urged Nigerians to support the government’s ongoing initiatives. He emphasized that sustaining the reform momentum is vital for further strengthening the Naira, consolidating economic gains, and ensuring investment flows continue.

“The reform agenda, though initially painful, has been the game-changer,” Kwairanga concluded. “The results are now impacting the economy positively, and I can tell you that better days are ahead if we stay the course.”

(NAN) (www.nannews.ng)

UP/RSA
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Edited by Rabiu Sani-Ali