In 2024, the Nigerian Exchange Limited (NGX) saw a remarkable surge of N8.1 trillion in its market capitalization, despite Nigeria’s economic downturn and rising interest rates. The market capitalization, which started the year at N40.92 trillion, increased by 44.5% to N59.11 trillion by November 29, 2024. Key contributors to this growth were new listings, including major financial institutions and manufacturing companies such as Aradel Holdings, Transcorp Power, and Nigerian Breweries, all of which aimed to expand their businesses and meet the Central Bank of Nigeria’s (CBN) capital requirements.
The banking sector played a major role in this growth, with several banks raising substantial capital through rights issues, public offerings, and private placements. Notable institutions like Guaranty Trust Holding Company, Zenith Bank, and Access Holdings raised billions of naira, responding to the CBN’s revised capital thresholds, which require commercial banks to meet higher minimum capital requirements by 2026. Nigerian Breweries and International Breweries also raised significant capital, with the latter’s rights issue being oversubscribed by nearly 88%, highlighting the market’s strong investor confidence.
Experts have noted that the capital raised by these companies is essential for ensuring financial stability and fostering business growth in a challenging macroeconomic environment. The NGX’s introduction of the NGX Invest platform has played a crucial role in facilitating these capital-raising efforts, helping over N1.26 trillion in funds to be raised by banks. This reflects the potential of the Nigerian capital market to support companies in strengthening their balance sheets and expanding operations amid economic pressures.