The Nigerian Exchange Limited (NGX) is set to introduce a new equity pricing framework from August 17, 2026, in a major move aimed at improving price discovery and curbing distortions in the stock market. The revised methodology, approved by the Securities and Exchange Commission (SEC), is designed to prevent small, non-economic trades from causing significant movements in the published prices of listed companies.
Under the new system, a stock transaction must meet a specific minimum quantity before it can trigger an official price movement. The threshold will depend on the prevailing price of the security, with stocks priced at N1,000 and above requiring at least 10,000 units, while shares between N500 and N999.99 will need a minimum trade of 50,000 units.
For stocks trading below N500, investors will need to trade at least 100,000 units before the transaction can influence the published share price. NGX said the new structure is particularly important for thinly traded stocks, where relatively small transactions can sometimes create price movements that do not accurately represent broader market demand and supply. The exchange also confirmed that the existing daily price movement limits will remain unchanged.
Market experts have welcomed the reform, saying it could strengthen confidence in Nigeria’s capital market by making published prices more reflective of meaningful trading activity. Garba Kurfi, managing director and chief executive officer of APT Securities and Funds Limited, said the volume thresholds should help prices better reflect genuine market demand and supply, while senior stockbroker Tunde Oyediran noted that the changes could help reduce artificial volatility by giving greater weight to trades with real economic significance.
The Association of Securities Dealing Houses of Nigeria (ASHON) said it is working with trading licence holders to ensure a smooth transition before the new rules take effect. Trading systems, surveillance tools and client advisories are being updated to accommodate the revised requirements, while market participants have been advised to familiarise themselves with the new thresholds. With the August 17 deadline fast approaching, the NGX believes the reform could mark an important step toward a more transparent, reliable and efficient Nigerian equities market.
source: Leadership
