By Ginika Okoye

Some capital experts have expressed optimism that high yield Federal Government securities and banking recapitalisation inflow will attract investment and sustain economic growth in the second half (H2) of 2025.

They said this at a webinar with the theme: “Mid-Year 2025 Macroeconomic Review and Outlook for H2 2025,” organised by the Arthur Steven Asset Management Ltd.

Speaking at the webinar, Prof. Uche Uwaleke, the President, Capital Market Academics of Nigeria, said the use of foreign exchange-hedged instruments or eurobond exposures should be used to mitigate naira risk.

Uwaleke added that the deployment of equity exposure early would help the country sustain growth in the second half of the year.

He said a combined local instruments (equity and fixed income) for yield‑plus‑growth balance would help the country sustain growth in the second half of 2025.

He said that a balanced portfolio across high‑yield fixed income, selective equities, and currency risk mitigation would position investors well in Nigeria’s mid‑year context.

Uwaleke said although global headwinds (tariffs, trade uncertainty, geopolitics) slowed growth and shaped risk sentiment in H₁, Nigeria showed resilience with moderate GDP growth, easing inflation, and structural reform momentum underpinning capital‑market revival.

“Capital market outlook remains positive, but risks persist. Outlook H₂/2025 remains cautiously optimistic: global growth low but stable; improving inflation dynamics.

“Nigeria poised for moderate growth, and capital‑market deepening.

“Strategic positioning in equities & bonds will be key for H2 returns.

“In a world of reform and risk, resilience will define Nigeria’s capital market success in H2, 2025.

The Managing Director of the Arthur Steven Asset Management Ltd., Mr Olatunde Amolegbe, said that recovery, policy recalibration, and renewed investor confidence marked the first half of 2025, both globally and domestically.

Amolegbe said the country’s macroeconomic environment reflected cautious optimism.

He said the mid-year review offered insights into key macroeconomic drivers, sector-specific performance, and market expectations, helping investors and policymakers reposition strategies for the evolving landscape.

Amolegbe said the market capitalisation rose from N62.76 trillion to N75.95 trillion, while select consumer and industrial goods stocks delivered triple-digit returns.

The managing director said the fixed income market remained attractive amid elevated yields, though primary market stop rate trended lower as inflation moderated.

According to him, commercial paper and bond issuances slowed due to high borrowing costs and cautious corporate sentiment.

Amolegbe anticipated further monetary easing, improved fiscal clarity following the 2025 Finance Act, and a continuation of investor-friendly reforms.

“Our outlook for the NGX remains bullish, with a projected full-year return of 39 per cent, supported by Q3/Q4 earnings momentum, banking recapitalisation flows, and anticipated new listings,” he said. (NAN)(www.nannews.ng)

Edited by Chinyere Joel-Nwokeoma