By Olawunmi Ashafa
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, said inadequate liquidity remains the biggest barrier preventing states from fully benefiting from the capital market.
Sanwo-Olu was represented by a former Lagos finance commissioner, Mr Abayomi Oluyomi.
He noted that sub-national issuers require a more vibrant market to raise funds efficiently for critical infrastructure.
According to him, if sub-national bonds must thrive, then liquidity must be at the centre of reforms.
He added that a liquid market gives states confidence to approach investors and assures investors of smooth entry and exit.
Sanwo-Olu said stronger participation by pension funds, asset managers and retail investors would improve pricing and reduce risk premiums for state-backed instruments.
He explained that clearer issuance criteria and better disclosure standards would further boost credibility.
“Liquidity, transparency and capacity must work together. With the right structure, the market can finance critical infrastructure without overburdening public revenues,” he added.
Sanwo-Olu assured that Lagos would continue to support policies and innovations that strengthen capital formation for development.
He commended AIHN for maintaining professional standards and recognising excellence in the market.
Earlier, AIHN President, Mrs Kemi Awodein, called for sustained reforms and stronger digital capacity to deepen the financial markets.
Awodein said the industry has remained resilient despite economic pressures but needs innovation, coordinated policies and upgraded skills to unlock broader opportunities.
She noted that technology, governance reforms and product diversification are essential for a modern, globally competitive capital market.
“We must continue to build a market that is transparent, efficient and globally competitive,” she said.
Awodein added that rising interest rates have pushed investors toward fixed-income assets, making diversification more urgent.
She stressed the need for stronger professionalism and digital skills to sustain investor confidence.
Awodein said regulators and operators must work more closely to expand products, improve investor education and uphold good governance.
She reaffirmed AIHN’s commitment to reforms and capacity building that will strengthen market stability and inclusion.
Delivering a keynote address, a former Lagos finance commissioner, Mr Rotimi Oyekan, warned that Nigeria must urgently address the “persistent challenge of creating liquidity in sub-national issuance.”
Oyekan said 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 added that mergers and acquisitions also increased, driven largely by domestic investors.
Oyekan disclosed that AIHN members executed transactions exceeding N15 trillion, describing the achievement as “remarkable resilience in spite of economic headwinds”.
He welcomed the Federal Government’s ongoing regulatory review, saying it will help restore confidence in the market.
Oyekan also urged issuing houses to improve compliance with data submissions to strengthen transparency.
Best Public Sector Debt Issuance House of the Year award was given to Chapel Hill Denham Advisory Ltd.
Best Corporate Bond House of the Year: FCMB Capital Markets Ltd.
Best Commercial Paper House of the Year: Stanbic IBTC Capital Ltd.
Best DCM House of the Year: Chapel Hill Denham Advisory Ltd.
Best Equity Deal of the Year: Nigerian Breweries Plc Rights Issue advised by Vetiva Advisory Services Ltd. (Transaction Lead) and Stanbic IBTC Capital Ltd.
Equity Listing of the Year: Aradel Holdings Plc listing by Introduction on the NGX – Jointly advised by Chapel Hill Denham Advisory Ltd. and Stanbic IBTC Capital Ltd.
Best Equity House for the Year: Chapel Hill Denham Advisory Ltd.
Best M&A Deal of the Year: Acquisition of ARM Pensions Managers Ltd. by Access Holdings Plc – advised by Coronation Merchant Bank Ltd.
Best M&A House for the Year: Coronation Merchant Bank Ltd.
Most Prolific Issuing House of the Year: Coronation Merchant Bank Ltd.
Prodigy Firm of the Year: Iron Global Markets Ltd.
Innovative Issuance of the Year: United Capital Plc (Transaction Lead), Meristem Capital Ltd., Stanbic IBTC Capital Ltd., Iron Global Markets Ltd., Vetiva Advisory Services Ltd. and Constant Capital.
Best Investment Bank of the Year: Chapel Hill Denham Advisory Ltd. (NAN)(www.nannews.ng)
Edited by Folasade Adeniran
