Stockbrokers have welcomed the extension of trading hours on the Nigerian Exchange, describing it as a significant move to deepen the capital market and bring it closer in line with global standards.
Market operators, who spoke in separate interviews with the News Agency of Nigeria on Tuesday, said the development would improve market efficiency, enhance liquidity and help reduce volatility.
The exchange has extended its trading hours from 9:30 a.m. – 2:30 p.m. to 9:00 a.m. – 4:00 p.m., with the new schedule set to take effect from 27 April.
Mr Aruna Kebira, Managing Director of Globalview Capital Ltd., described the seven-hour trading window as a major structural shift for the market.
He said the initiative formed part of broader efforts to modernise the exchange, particularly following Nigeria’s reclassification to Frontier Market status by FTSE Russell.
Kebira explained that longer trading hours would give the market more time to absorb macroeconomic data, corporate disclosures and global financial developments, thereby improving price discovery.
He added that the extended window was likely to increase daily trading volumes, as both institutional and retail investors would have greater flexibility to execute transactions.
According to him, closing at 4:00 p.m. would also improve overlap with major international markets, making it easier for foreign portfolio investors to manage their positions in real time.
Kebira said aligning with global exchanges such as the London Stock Exchange and the New York Stock Exchange would further enhance the attractiveness of the Nigerian market to international investors.
Mr Sola Oni, Chief Executive Officer of Sofunix Investment and Communications, said the extended hours would allow the market to respond more quickly to new information, strengthening its role as an information-driven system.
He added that the move, alongside plans by the Central Securities Clearing System to adopt a T+1 settlement cycle, reflected a coordinated effort to strengthen overall market operations.
Oni, however, cautioned that longer trading hours could increase operational costs for brokers and raise the risk of trading fatigue.
He nonetheless described the development as timely and beneficial, noting that it would boost liquidity and improve price efficiency.
Similarly, Dr Benneth Eze, Head of Research and Development at the Chartered Institute of Stockbrokers, said market operators would need to adjust staffing, technology and internal processes to support the longer sessions.
He said that while short-term costs might increase, the long-term benefits would include stronger investor confidence, higher trading volumes and a more resilient capital market.
Mr Bosun Babatunde, a Senior Stockbroker at Forth Financial Ltd., acknowledged that initial operational challenges could arise but expressed confidence that the benefits would outweigh the drawbacks.
He added that the extension would encourage wider market participation, improve liquidity and support capital formation.
Meanwhile, Mr David Adonri, Vice President of Highcap Securities, described the move as a proactive step to prepare the market for future growth.
He said it would position the exchange to accommodate major listings, including companies such as Dangote Refinery and Flutterwave.
Adonri noted that increased trading activity would enhance liquidity and overall market performance, describing the initiative as a positive development for the Nigerian capital market.
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