By Abubakar Yunusa
Nigeria’s capital market has surged by 125 per cent in market capitalisation within one year, rising from about N55tn in April 2024 to over N123.93tn.
The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, disclosed this in a statement obtained by Peoples Daily on Sunday
Agama, who spoke during his inaugural address to members of the Capital Market Working Group on Market Liquidity at the commission’s office, said the market’s contribution to Gross Domestic Product had also climbed from 13 per cent to 33 per cent within the same period.
He described the figures as a strong signal of investor confidence and resilience under the current administration.
“Since this administration came into being in April 2024, we have seen market capitalisation grow from about N55tn to over N123.93tn. 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,” he said.
Despite the growth, the SEC boss warned that size without liquidity could undermine sustainability.
“A capital market is often described as the barometer of an economy’s health. But for that barometer to be accurate, the market must be more than just large — it must be liquid,” Agama stated.
He identified structural constraints, including high transaction impact costs for institutional investors and the concentration of trades in a few highly capitalised stocks, leaving the broader market shallow.
According to him, weak liquidity could discourage investors who are unsure of exiting positions without significant price distortions.
To tackle the challenge, the commission inaugurated a multi-stakeholder Working Group comprising exchanges, custodians, fund managers, dealing members and other operators.
The group is expected to review trading and settlement infrastructure, identify bottlenecks affecting transaction speed and recommend reforms to make Nigeria’s settlement cycle competitive among emerging markets.
Agama said the SEC was targeting the onboarding of up to 20 million new investors through digital platforms, dematerialisation of share certificates and fintech partnerships.
He added that product innovation, particularly the development of derivatives and other asset classes, would be prioritised to deepen market activity.
The SEC DG also noted that the newly enacted Investments and Securities Act 2025 had expanded the commission’s oversight to digital assets, creating an avenue to channel speculative interest into regulated investments.
“The capital market is not gambling; it is the engine of national development. It finances roads, powers factories and creates jobs,” he said.
He urged members of the Working Group to deliver practical and bold recommendations to strengthen liquidity and support the Federal Government’s ambition of building a trillion-dollar economy.
In his remarks, the Group Chief Executive Officer of Nigerian Exchange Group, Mr Temi Popoola, assured the SEC that the team would diagnose structural constraints with candour and deliver measurable reforms to deepen liquidity and restore confidence in the market.
