The Nigerian capital market’s contribution to the Gross Domestic Product surged to 33% in February 2026, representing a significant expansion from the 13% recorded in April 2024.
This growth followed a N68.83 trillion increase in total market capitalization over a 22-month period. Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama, attributed this trajectory to the implementation of the Investments and Securities Act 2025 and heightened investor confidence in the regulatory framework.
The market capitalization currently exceeds N123.93 trillion, driven primarily by high-cap stocks in the banking, industrial, and telecommunications sectors.
While the valuation has increased by approximately 125%, the SEC identifies a need for deeper market liquidity and reduced transaction costs to ensure the market functions as a representative economic barometer.
The SEC has established a Capital Market Working Group on Market Liquidity to address the high concentration of trading activity and improve the ease of entry and exit for institutional investors.
Strategic integration of digital assets under the ISA 2025 has further expanded the market’s reach, capturing previously unregulated capital flows.
The transition from a 13% GDP contribution to 33% underscores the capital market’s growing role as a primary vehicle for national infrastructure financing and corporate capital formation.
Future stability depends on diversifying trading activity beyond a few blue-chip entities and maintaining the current momentum of regulatory reform.
Source: Punch.ng
