African capital markets must broaden their investment focus beyond traditional sectors such as oil, gas and banking if the continent hopes to unlock sustainable long-term growth, the chairman of the Nigerian Exchange Group has said, urging policymakers and investors to channel more funding into the creative economy and emerging industries.
Speaking at an industry forum in Lagos, NGX Chairman Umaru Kwairanga said Africa’s financial markets remain overly concentrated in extractive industries and financial institutions, limiting the continent’s ability to capture growth from technology, entertainment, fashion, media and digital innovation.
“The future of African growth cannot continue to depend almost entirely on commodities and banks,” he said. “We must deliberately create pathways for capital to reach the creative economy and other high-growth sectors that increasingly define modern economic value.”
The comments come as African economies face mounting pressure to diversify export earnings and domestic revenue sources amid volatile oil prices, currency instability and slowing foreign investment inflows. In Nigeria, where hydrocarbons still account for the bulk of export receipts and government revenues, policymakers have intensified calls for broader private-sector-led growth.
Kwairanga said capital markets across the continent should evolve from their traditional role of financing legacy sectors into platforms capable of supporting intellectual property-driven industries, start-ups and innovation-led enterprises. He argued that Africa’s youthful population, expanding digital adoption and rising global demand for African entertainment and culture present a major economic opportunity that remains underfunded.
Nigeria’s creative sector spanning music, film, fashion, gaming and digital content has gained increasing international visibility over the past decade. Global streaming platforms and foreign investors have poured resources into African entertainment, while Nigerian artists and filmmakers continue to achieve commercial success abroad. Yet industry participants say access to long-term financing remains limited, particularly for small and medium-sized creative businesses.
Analysts say deeper market reforms, stronger investor protections and improved disclosure standards would be necessary before institutional investors significantly increase exposure to creative enterprises, which are often viewed as higher-risk and less predictable than banks or energy companies.
Still, proponents argue the sector could become a meaningful contributor to employment generation and foreign exchange earnings. According to industry estimates, Nigeria’s entertainment and media market is projected to continue expanding rapidly as smartphone penetration and internet access improve across Africa.
Kwairanga also called for closer collaboration between regulators, exchanges and governments to develop financial instruments tailored to emerging sectors, including venture capital structures, intellectual property-backed financing and specialised growth boards for innovative companies.
His remarks reflect a broader debate over the future direction of African capital markets as governments seek new engines of growth in an increasingly digital global economy.
