Nigeria Capital Market Contribution to GDP Hits 33% as Market Cap Surges by ₦68.83tn
Nigeria’s capital market has recorded a remarkable expansion, with its contribution to the nation’s Gross Domestic Product rising from 13 per cent in April 2024 to 33 per cent as of February 2026. The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, disclosed that market capitalisation climbed from ₦55tn to over ₦123.93tn within the period — a ₦68.83tn increase representing a 125 per cent appreciation. The figures were announced in Lagos during his inaugural address to members of the Capital Market Working Group on Market Liquidity.
Agama described the surge as a strong signal of renewed investor confidence and resilience in Nigeria’s financial system. “These are impressive figures, but they tell only part of the story,” he noted, stressing that while growth in size is encouraging, sustainability depends on improving market depth and liquidity. He explained that for the capital market to serve as a true barometer of economic health, investors must be able to enter and exit positions efficiently without triggering sharp price swings.
Despite the gains, structural concerns remain. Agama pointed to high transaction impact costs faced by institutional investors and the concentration of trades in a small cluster of highly capitalised stocks, leaving the broader market relatively shallow. According to him, insufficient liquidity could discourage participation, particularly if investors fear difficulty in exiting investments without losses.
To tackle these bottlenecks, the SEC has inaugurated a multi-stakeholder working group comprising exchanges, custodians, fund managers and dealing members. The committee, chaired by the Group Chief Executive Officer of Nigerian Exchange Group, Mr Temi Popoola, is tasked with reviewing trading and settlement infrastructure, identifying technical constraints, and recommending reforms to boost efficiency. The Commission is also targeting up to 20 million new retail investors through digital onboarding, fintech partnerships and dematerialisation of share certificates.
Agama further highlighted the role of product innovation, particularly derivatives and other asset classes, in strengthening liquidity. He noted that the recently enacted Investments and Securities Act 2025 expands regulatory oversight to digital assets, offering an avenue to channel speculative interest into regulated investment platforms. Emphasising the broader economic impact, he said the capital market finances infrastructure, powers businesses and creates jobs, aligning with the Federal Government’s ambition of building a trillion-dollar economy.
source: punch