Lagos: Gov. Babajide Sanwo-Olu of Lagos State has renewed calls for deeper market liquidity to strengthen sub-national bond issuances and expand long-term financing opportunities for state governments. Speaking at the 2024 Association of Issuing Houses of Nigeria (AIHN) Investment Banking Awards in Lagos, Sanwo-Olu, represented by former Lagos finance commissioner Mr. Abayomi Oluyomi, emphasized that inadequate liquidity remains the biggest barrier preventing states from fully benefiting from the capital market.
According to News Agency of Nigeria, Sanwo-Olu noted that sub-national issuers require a more vibrant market to raise funds efficiently for critical infrastructure. He stated that if sub-national bonds must thrive, then liquidity must be at the center of reforms. A liquid market, he explained, provides states the confidence to approach investors and assures investors of smooth entry and exit. Sanwo-Olu also highlighted that stronger participation by pension funds, asset managers, and retail investors would improve pricing and reduce risk premiums for state-backed instruments.
The governor further explained that clearer issuance criteria and better disclosure standards would boost credibility. He remarked, "Liquidity, transparency, and capacity must work together. With the right structure, the market can finance critical infrastructure without overburdening public revenues." Sanwo-Olu assured that Lagos would continue to support policies and innovations that strengthen capital formation for development.
AIHN President, Mrs. Kemi Awodein, also addressed the audience, calling for sustained reforms and stronger digital capacity to deepen the financial markets. Awodein noted that the industry has remained resilient despite economic pressures but needs innovation, coordinated policies, and upgraded skills to unlock broader opportunities. She stressed the importance of technology, governance reforms, and product diversification for a modern, globally competitive capital market.
Delivering a keynote address, former Lagos finance commissioner Mr. Rotimi Oyekan warned that Nigeria must urgently address the "persistent challenge of creating liquidity in sub-national issuance." Oyekan mentioned that the capital market witnessed a notable shift in 2024, with equity transactions rising as firms sought to repair balance sheets affected by currency devaluation. He also noted an increase in mergers and acquisitions, largely driven by domestic investors.
The AIHN Investment Banking Awards celebrated excellence in the market, with Chapel Hill Denham Advisory Ltd. receiving the Best Public Sector Debt Issuance House of the Year award, and FCMB Capital Markets Ltd. named Best Corporate Bond House of the Year, among other accolades. Chapel Hill Denham Advisory Ltd. also received the Best Investment Bank of the Year award, cementing its position as a leader in the industry.