Why Minority Investors Matter: Sola Oni Explains the Future of Nigeria’s Capital Market
Veteran capital market expert Sola Oni — with over 30 years of experience in financial journalism, capital market operations, and strategic communications — has shared deep insights on the role of minority investors, market reforms, and Nigeria’s financial future.
Here’s a clear breakdown of the key points from his interview
⚡ 1. Nigeria’s Capital Market Is Entering a New Era
The market is shifting from:
• T+3 settlement (payment in 3 days)
to
• T+2 settlement (payment in 2 days), starting 28 November 2025.
This upgrade will make Nigeria faster, more efficient, and more competitive globally.
Advanced markets like India, China, Canada, and Mexico already use T+1 or T+2.
He also explained why T+0 (instant settlement) is rare — it locks up cash and reduces liquidity.
2. Minority Investors Are the Backbone of Market Growth
According to Oni, minority investors (those owning less than 50% of a company) are critical because they:
• Deepen market liquidity
• Ask tough questions
• Force better governance
• Strengthen transparency
He emphasized that every investor must know:
• Their risk tolerance
• Investment objectives
• Time horizon
• Source of funds
Without this, they are taking “uncalculated risks.”
He believes minority investors can benefit from the ongoing recapitalisation in banking, fintech, and insurance — especially companies where new capital will open fresh growth opportunities.
3. Tax Reforms Will Shape 2026 and Beyond
The ongoing tax reforms led by Taiwo Oyedele will significantly influence:
• Investor confidence
• Market attractiveness
• Corporate earnings
• Foreign portfolio inflows
Many are worried about the proposal to increase Capital Gains Tax from 10% to 30%, which could reduce investor interest.
Oni urges the government to provide:
• Tax incentives
• Balanced policies
• Measures that retain investor confidence
4. Commodities Market: Huge Untapped Potential
Nigeria’s commodities ecosystem is growing but still largely underutilized.
Positive signs include:
• N23.4bn Eko Rice Classic contract listed on the Lagos Commodities and Futures Exchange
• New Investment and Securities Act (2025), which formalizes the commodities framework
But stronger government support is needed — including:
• Mandatory use of commodities exchanges
• Better logistics and warehousing
• Policies that reduce post-harvest losses
5. Why Minority Investor Education Is Essential
Minority investors have several rights under CAMA 2020, SEC rules, and NGX rules:
• Right to information
• Right to dividends
• Right to vote
• Protection against oppression
• Right to legal redress
When companies respect these rights:
• Confidence grows
• Liquidity improves
• More investors (local & foreign) join the market
Educated investors = a stronger, fairer, more vibrant market.
6. The Future: Tech, Innovation & Younger Investors
Over the next 5 years, Oni predicts:
• More millennials and Gen Z will enter the market
• Digital platforms will expand participation
• More companies will raise long-term funds via the market
• Commodities exchanges will become bigger contributors to GDP
• New OTC products (via NASD) will boost activity
But this future depends on:
• Consistent reforms
• Technology adoption
• Implementation of the SEC Master Plan
• Proper execution of ISA 2025
7. His Personal Journey
Oni moved from journalism to the capital market in 1992.
He trained with:
• NY Institute of Finance
• U.S. SEC
• World Bank (Chicago)
He later won major awards and rose to management at the Nigerian Stock Exchange.
Today he works as a PR expert, strategist, and educator — still passionate about market development and mentoring younger journalists.
8. His Advice to Regulators & Listed Companies
One mindset shift needed:
Regulators and companies must prioritize trust and transparency.
Trust = investor confidence → more liquidity → more growth.
Veteran capital market expert Sola Oni — with over 30 years of experience in financial journalism, capital market operations, and strategic communications — has shared deep insights on the role of minority investors, market reforms, and Nigeria’s financial future.
Here’s a clear breakdown of the key points from his interview
⚡ 1. Nigeria’s Capital Market Is Entering a New Era
The market is shifting from:
• T+3 settlement (payment in 3 days)
to
• T+2 settlement (payment in 2 days), starting 28 November 2025.
This upgrade will make Nigeria faster, more efficient, and more competitive globally.
Advanced markets like India, China, Canada, and Mexico already use T+1 or T+2.
He also explained why T+0 (instant settlement) is rare — it locks up cash and reduces liquidity.
2. Minority Investors Are the Backbone of Market Growth
According to Oni, minority investors (those owning less than 50% of a company) are critical because they:
• Deepen market liquidity
• Ask tough questions
• Force better governance
• Strengthen transparency
He emphasized that every investor must know:
• Their risk tolerance
• Investment objectives
• Time horizon
• Source of funds
Without this, they are taking “uncalculated risks.”
He believes minority investors can benefit from the ongoing recapitalisation in banking, fintech, and insurance — especially companies where new capital will open fresh growth opportunities.
3. Tax Reforms Will Shape 2026 and Beyond
The ongoing tax reforms led by Taiwo Oyedele will significantly influence:
• Investor confidence
• Market attractiveness
• Corporate earnings
• Foreign portfolio inflows
Many are worried about the proposal to increase Capital Gains Tax from 10% to 30%, which could reduce investor interest.
Oni urges the government to provide:
• Tax incentives
• Balanced policies
• Measures that retain investor confidence
4. Commodities Market: Huge Untapped Potential
Nigeria’s commodities ecosystem is growing but still largely underutilized.
Positive signs include:
• N23.4bn Eko Rice Classic contract listed on the Lagos Commodities and Futures Exchange
• New Investment and Securities Act (2025), which formalizes the commodities framework
But stronger government support is needed — including:
• Mandatory use of commodities exchanges
• Better logistics and warehousing
• Policies that reduce post-harvest losses
5. Why Minority Investor Education Is Essential
Minority investors have several rights under CAMA 2020, SEC rules, and NGX rules:
• Right to information
• Right to dividends
• Right to vote
• Protection against oppression
• Right to legal redress
When companies respect these rights:
• Confidence grows
• Liquidity improves
• More investors (local & foreign) join the market
Educated investors = a stronger, fairer, more vibrant market.
6. The Future: Tech, Innovation & Younger Investors
Over the next 5 years, Oni predicts:
• More millennials and Gen Z will enter the market
• Digital platforms will expand participation
• More companies will raise long-term funds via the market
• Commodities exchanges will become bigger contributors to GDP
• New OTC products (via NASD) will boost activity
But this future depends on:
• Consistent reforms
• Technology adoption
• Implementation of the SEC Master Plan
• Proper execution of ISA 2025
7. His Personal Journey
Oni moved from journalism to the capital market in 1992.
He trained with:
• NY Institute of Finance
• U.S. SEC
• World Bank (Chicago)
He later won major awards and rose to management at the Nigerian Stock Exchange.
Today he works as a PR expert, strategist, and educator — still passionate about market development and mentoring younger journalists.
8. His Advice to Regulators & Listed Companies
One mindset shift needed:
Regulators and companies must prioritize trust and transparency.
Trust = investor confidence → more liquidity → more growth.