Nigeria’s capital market contribution to Gross Domestic Product (GDP) rose sharply to 33 per cent as total market capitalisation climbed to over N123.93 trillion, up from about N55 trillion in April 2024 a 125 per cent increase, the Securities and Exchange Commission (SEC) has disclosed.
SEC Director-General Dr. Emomotimi Agama announced the figures during his inaugural address to members of the Capital Market Working Group on Market Liquidity in Lagos, underscoring the capital market’s expanding role in Nigeria’s economic landscape.
He characterised the growth as driven by renewed investor confidence and resilience, but warned that size alone is insufficient without corresponding market depth and liquidity.
Agama described the capital market as an economic “barometer” that must be both large and liquid to accurately reflect economic health.
He identified persistent structural challenges, including high transaction costs for institutional investors and concentrated trading in a narrow set of large-capitalisation stocks, which hinder wider participation and market depth.
To address these constraints, the SEC has inaugurated a multi-stakeholder Working Group comprising exchanges, custodians, fund managers, dealing members and other operators.
The group is mandated to develop practical reforms to strengthen liquidity, improve price discovery and enhance trading efficiency.
Key priorities include reviewing trading and settlement infrastructure, identifying technical bottlenecks, and proposing reforms to make Nigeria’s settlement cycle more competitive among emerging markets.
The SEC also aims to broaden retail investor participation by targeting the onboarding of up to 20 million new retail investors through digital platforms, share dematerialisation and partnerships with fintech firms.
Product innovation — especially the accelerated introduction of derivatives and other asset classes is expected to deepen market activity and provide hedging opportunities.
Agama noted that the recently enacted Investments and Securities Act (ISA) 2025 expands regulatory oversight to include digital assets, providing channels to guide speculative activity into regulated investment vehicles.
He reiterated that the capital market’s role in financing infrastructure, supporting businesses and creating jobs remains central to Nigeria’s economic growth objectives.
The SEC’s liquidity reform drive is part of its broader 2026 agenda focused on stimulating long-term capital formation, broadening investor access and enhancing market competitiveness in support of Nigeria’s ambition to build a trillion-dollar economy.
Soyrce:Nairametrics
