Nigeria’s capital market value jumps 125% - SEC DG
…SEC targets 20mn new investors Nigeria’s capital market has expanded significantly within the past year, with total market capitalisation rising by 125 per cent from about N55 trillion in April
...SEC targets 20mn new investors
Nigeria’s capital market has expanded significantly within the past year, with total market capitalisation rising by 125 per cent from about N55 trillion in April 2024 to over N123.93 trillion.
The Director-General of the Securities and Exchange Commission, Emomotimi Agama, disclosed this in Lagos during his inaugural address to members of the Capital Market Working Group on Market Liquidity.
Agama said the capital market’s contribution to the nation’s Gross Domestic Product also rose sharply within the same period, increasing from 13 per cent to 33 per cent.
According to a statement issued by the commission on Sunday, the SEC chief said: “Since this administration came into being in April 2024, we have seen market capitalisation grow 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.”
He noted that while the growth indicators were significant, sustained reforms and improved market liquidity would be critical to consolidating the gains.
He explained that the figures show rising investor confidence and the ability of the Nigerian capital market to withstand economic pressure, but warned that size alone is not enough to guarantee long-term strength.
“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,” he said.
Agama noted that liquidity, which determines how easily investors can buy or sell shares without affecting prices, remains a key issue. He pointed out that high transaction costs for big investors and the concentration of trades in only a few highly capitalised stocks still limit the depth of the market.
According to him, if investors fear they cannot easily sell their investments without losing money due to price swings, they may stay away from the market altogether.
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To tackle these challenges, the Commission has set up a multi-stakeholder Working Group made up of exchanges, custodians, fund managers, brokers, and other operators. The team is expected to review trading systems, identify technical obstacles slowing transactions, and propose ways to make Nigeria’s settlement cycle more competitive with other emerging markets.
Another major goal of the initiative is to bring in more ordinary Nigerians into the market. The SEC plans to attract up to 20 million new retail investors by promoting digital investment platforms, removing paper share certificates, and partnering with fintech companies.
Agama said introducing new financial products will also help deepen activity, especially derivatives and other instruments that allow investors to manage risks while keeping funds in the market.
He added that the recently passed Investments and Securities Act 2025 has expanded the Commission’s authority to cover digital assets, creating an opportunity to guide speculative interest into regulated and productive investment channels.
“The capital market is not gambling; it is the engine of national development. It finances roads, powers factories, and creates jobs,” he said.
Agama urged members of the Working Group to present practical ideas that will improve liquidity and support the Federal Government’s ambition of building a trillion-dollar economy. He explained that while the recent rise in market value and GDP contribution shows progress, the next phase of reform will focus on making the market deeper, more inclusive, and globally competitive.
In his remarks, the committee chairman and Group Chief Executive Officer of the Nigerian Exchange Group, Temi Popoola, gave the assurance that members understand their task.
He said the team would carefully study structural challenges, agree on workable reforms, and deliver measurable actions that will deepen liquidity, restore investor confidence, and strengthen the resilience of Nigeria’s capital market.
