Stockbrokers have commended the extension of trading hours on the Nigerian Exchange Ltd., describing it as a major step toward deepening the capital market and aligning it with global standards.
The market operators, who spoke in separate interviews on Tuesday, said the development would enhance market efficiency, improve liquidity and reduce volatility.
NGX has extended its trading hours from 9:30 a.m. – 2:30 p.m. to 9:00 a.m. – 4:00 p.m., effective April 27.
Mr Aruna Kebira, Managing Director of Globalview Capital Ltd., described the new seven-hour trading window as a significant structural shift for the market.
He said the initiative was part of efforts to modernise the exchange, particularly following Nigeria’s reclassification to Frontier Market status by FTSE Russell.
Kebira noted that longer trading hours would allow the market more time to absorb macroeconomic data, corporate disclosures and global financial developments, thereby improving price discovery.
He added that the extended window would likely increase daily trading volumes, as both institutional and retail investors would have more flexibility to execute transactions.
According to him, closing at 4:00 p.m. will also create better 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 NGX’s attractiveness to international investors.
Also, Mr Sola Oni, Chief Executive Officer of Sofunix Investment and Communications, said the extension would enable the market to respond more quickly to new information, reinforcing its role as an information-driven system.
He added that the development, alongside plans by the Central Securities Clearing System to adopt a T+1 settlement cycle, reflected a coordinated effort to strengthen market operations.
Oni, however, noted that longer trading hours could increase operational costs for brokers and pose the risk of trading fatigue.
He also described the move as timely and beneficial, noting that it would boost liquidity and improve price efficiency.
In the same vein, Dr Benneth Eze, Head of Research and Development at the Chartered Institute of Stockbrokers, said operators would need to adjust staffing, technology and processes to support the extended sessions.
He said that although short-term costs might rise, the long-term gains would include increased investor confidence, higher trading volumes and a more resilient capital market.
Mr Bosun Babatunde, a Senior Stockbroker at Forth Financial Ltd., said initial operational challenges might arise, but expressed confidence that the benefits would outweigh the drawbacks.
He added that the move would encourage broader participation, improve liquidity and support capital formation.
Meanwhile, Mr David Adonri, Vice President of Highcap Securities, described the extension as a proactive step to prepare the market for future growth.
He said it would position the exchange to accommodate large listings, including companies such as Dangote Refinery and Flutterwave.
Adonri noted that increased trading activity would boost liquidity and overall market performance, describing the initiative as a positive development for the Nigerian capital market.