Nigerian Capital Market Capitalisation surges 125% in 23 months

2026-02-22 - 16:36

...Now Contributes 33% of GDP By Obas Esiedesa, Abuja ABUJA — The Nigerian capital market has recorded a remarkable 125 per cent growth in market capitalisation over the past 23 months, rising from about N55 trillion in April 2024 to over N123.93 trillion, the Securities and Exchange Commission (SEC) has disclosed. Speaking in Abuja during his inaugural address to the Capital Market Working Group on Market Liquidity, SEC Director-General Dr. Emomotimi Agama said the market’s contribution to Nigeria’s Gross Domestic Product (GDP) has also surged from 13 per cent to 33 per cent, highlighting the sector’s growing role in economic development. “Since this administration came into being in April 2024, market capitalisation has grown from about N55 trillion to over N123.93 trillion. Our contribution to GDP has moved from 13 per cent to 33 per cent. These are impressive figures, but they tell only part of the story,” Agama said. Agama stressed that market size alone is insufficient without corresponding liquidity and depth, noting that investors may hesitate to participate if exit options are uncertain or prices distort easily. He identified challenges including high transaction impact costs for institutional investors and the concentration of trades in a limited number of highly capitalised stocks, leaving the broader market relatively shallow. To address these issues, the SEC inaugurated a multi-stakeholder Working Group comprising exchanges, custodians, fund managers, and other market operators. The group is tasked with improving trading efficiency, deepening participation, and enhancing price discovery. The Working Group will review trading and settlement infrastructure, identify bottlenecks affecting transaction speed, and propose measures to make Nigeria’s settlement cycle more competitive with other emerging markets. The SEC also aims to expand retail participation, targeting up to 20 million new investors through digital platforms, dematerialisation of share certificates, and fintech partnerships. Product innovation, including the accelerated development of derivatives and other asset classes, will be central to improving liquidity. Agama highlighted the recently enacted Investments and Securities Act, which expanded SEC’s oversight to include digital assets, creating avenues to channel speculative interest into regulated investment products. “The capital market is not gambling; it is the engine of national development. It finances roads, powers factories, and creates jobs,” he said. The chairman of the Committee and Group CEO of Nigerian Exchange Group, Temi Popoola, commended the SEC for the initiative, assuring that the team will diagnose structural constraints and deliver actionable recommendations to strengthen liquidity, restore investor confidence, and enhance market resilience. Agama concluded that while the capital market’s growth is impressive, the next phase of reforms will focus on ensuring it is deep, inclusive, and globally competitive, supporting the Federal Government’s ambition of building a trillion-dollar economy.