Being the rapporteur’s report on the presentation by Mr. John Uwajumogu – Special Adviser to the President on Trade, Industry and Investment at the AMEDA Conference 2025 held in collaboration with the Central Securities and Clearing Systems Plc (CSCS) themed Shaping the Future: Financial Markets & Infrastructures as Catalysts for Transforming Economies held at Eko Hotel, Lagos, on April 24, 2025.
Compere
- Mr Ik Osakioduwa
This report is presented under the following headings:
Outline
- Executive Summary
- Presentation
- Key Points and Insights from Presentation
- Call to Action
- Conclusion
- Related items
Executive summary
The AMEDA Conference 2025 is anchored on the theme Shaping the Future: Financial Markets and Infrastructure as Catalyst for Transforming Economies. The conference featured several presentations, including the presentation by Mr. John Uwajumogu – Special Adviser to the President on Trade, Industry and Investment, titled “Transforming Economies through Financial Markets & Infrastructures.” The presenter considered the pivotal role of financial markets and FMIs in economic transformation and the target of Nigeria becoming a $1trn economy, however, noting downsides such as segregation. Using data from various sources, the presenter reveals the extent of growth in global and regional markets due to the pace of growth of the financial markets infrastructure industry. Looking ahead, the presenter described the FMI as being a crucial tool for revenue mobilisation for cross-sectoral-based investment; however, geopolitical shifts and energy transition will be key in shaping the future of financial markets and the FMI industry.
- Presentation
“The financial markets provide the platform for self-interest to coalesce into a utilitarian environment”– John Uwajumogu
In the presentation by Mr. John Uwajumogu – Special Adviser to the President on Trade, Industry and Investment is titled “Transforming Economies through Financial Markets & Infrastructures,” the presenter viewed financial markets not just as a platform for economic transformation but as a front-line solution and driver of economic growth, leveraging financial market infrastructures (FMIs) crucial to capital mobilisation, investment growth, and industry and trade expansion.
Borrowing from the classical economic school of thought associated with
Adam Smith, who believed that individuals in a competitive market sought their self-interest, guided by an invisible hand, which restores stability in a society, the presenter described FMI as the invisible hand that guides other invincible hands. The financial market provides that platform for investors ‘ self-interest to transition into a utilitarian environment that creates the greater good for the investors. FMIs provide all the transformation, the tools, and the capital formation possibilities required.
Nigeria is at a critical point in its development. The protocols and framework that have guided financial capital flows over the last decade must be made more efficient, as seen in more advanced economies, to unlock sustainable economic growth. FMIs thus remain crucial to playing a pivotal role in the economy by ensuring;
- Price discovery
- Capital can be allocated to the most productive sectors, which is possible because price discovery is not a binding constraint.
- Growth in Confidence and flexibility in investment decisions due to price discovery.
- FMIs serve as a tool for crisis management with regulators’ intervention
- Higher levels of inclusion
The global FMI industry remains viable and is expanding annually to reach $273bn in 2023, an increase of 8% over the previous year. Shareholder returns were 70% higher relative to the broader financial services sector in 2023. Funding to the industry reached $2.9bn in 2022, up from $1.3bn in 2019. The presenter’s data also reveals that FMI industry expansion has been positive, given the growth in the number of Fintechs with unicorn status in Nigeria.
According to the presenter, the growth in the FMI industry is driven by shorter settlement cycles which have become almost instantaneous (t+0, t+1 settlements), tokenisation and blockchain technologies bridging the gap between traditional and digital finance, and demand for financial data due to growth in data projected to reach $70bn by 2030 from 33bn in 2029. Mr John noted that the increasing momentum towards cross-border connectivity is also a key factor in this industry’s growth. In this area, Africa lags, and institutions such as Afriexim are leading the initiative to create a more efficient pan Africa payment system. Systems such as the MANSA KYC system also remain crucial to KYC activities in the region while also ensuring lower transaction costs. The rise of Fintechs is reshaping the FMI space, driving financial inclusion and growth in funding. The rise of AI is reshaping the industry, empowering real-time trading and risk management.
The presenter noted that Africa is the next frontier for investment, with its youthful demography providing a viable market and human capital. Markets such as the sub-Saharan MENA markets have a median age of 18.1 and 25.9 years, respectively. There is an increasing demand for connectivity, inclusion, and access to investible products. The events of collar crime actors promoting Ponzi schemes, such as MMM and CBEX in Nigeria, suggest the desire to invest among youths. FMIs leveraging technology can drive youth inclusivity into the markets and ensure access to investible products.
In Nigeria, the President’s ‘Renewed Hope Agenda’, which targets a $1trn economy by 2033, will require an 8.3% annual GDP growth, which will be catalysed by investments of at least $10bn annually. The Presenter notes that an effectively working financial market underpinned by a robust FMI represents a catalyst for Nigeria’s growth. The presenter noted that despite the many merits of the FM and FMIs there have been downsides as well such as high level of economic stratification which may leave out certain class of people in benefiting from the value creation possibility of the financial markets however, with broader participation and capital allocation to high impact sectors, inclusion levels will be expanded.
According to the presenter, the future of the financial markets and infrastructures will be shaped and sustained by energy transition and shifting geopolitical considerations (which have seen high levels of assault on the rule-based global trade system due to increased protectionist activities).
- Key Points and Insights from Presentation
- The Financial market is crucial for economic transformation, and as a front-line solution/driver of economic growth.
- FMI is the invisible hand that guides other invincible hands, guiding investors’ self-interest and overall stability in the market.
- FMIs provide all the transformation, the tools, and the capital formation possibilities required.
- The FMI industry remains highly viable and expanding with positive annual returns to shareholders due to technology integration, asset base expansion, and increased participation amongst others.
- Africa remains a frontier market with strong demand for connectivity, inclusion and access to investible products from its youthful demography.
- FM and FMI are catalysts for Nigeria’s growth through investment mobilisation and capital allocation, supporting the President’s ‘Renewed Hope Agenda’, which targets a $1trn economy in the next 10 years by 2033.
- Call to Action
- The presenter advocated for stronger regulatory provisions, increased capital mobilisation driven by trust and transparency, the creation of infrastructure that balances innovation with stability, systems that support a transition into green finance and digital asset investments, and public and private sector collaboration in a bid to derisk products and investments, allowing for greater participation.
- Beyond policy declarations and vision, Nigeria requires market modernisation, market depth for broad participation, market positioning to increase competitiveness, digital connectivity, and interoperability.
Conclusion
Technology has evolved, and the financial markets remain one of the most impacted areas. Financial markets can drive economic transformations by attracting capital to real sectors of the economy, increasing industrial base operations, and trade competition. Financial market infrastructures are the invisible hand behind the invisible hand, working to enable trust, ensuring that markets function efficiently and economies grow predictably. Financial markets with an efficient structure ensure price discovery, investor confidence, crisis management, competitiveness, driving transformative change and risk mitigation. The FMI industry is at the heart of global financial markets. It is poised to continue its growth trajectory, subject to factors such as technological evolution, energy transition and geopolitical shifts.
The Conference ended at 5.00 PM prompt.
