The Securities and Exchange Commission Nigeria (SEC) says Nigeria’s capital market has expanded significantly since April 2024, with market capitalisation rising by 125 percent to over N123.93 trillion.
Director-General Emomotimi Agama disclosed the figures while addressing members of the capital market working group on liquidity in Lagos, according to a statement released Sunday.
“Since this administration came into being in April 2024, we have seen market capitalisation grow from about N55 trillion to over N123.93 trillion,” Agama said.
He added that the market’s contribution to Nigeria’s gross domestic product (GDP) increased from 13 percent to 33 percent within the same period.
“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 said.
Growth Reflects Investor Confidence
Agama attributed the strong performance to rising investor confidence and what he described as improved stability under the current administration. He said the expansion underscores the capital market’s growing role in supporting economic development.
However, the SEC chief cautioned that size alone is not enough to sustain momentum.
“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.
According to him, limited liquidity can discourage participation, particularly for investors concerned about exiting positions without triggering price distortions.
Push for Product Innovation
Agama said improving liquidity would require accelerated development of new financial instruments, including derivatives and other asset classes that enable hedging and risk management.
He also highlighted the significance of the Investments and Securities Act 2025, noting that the updated law broadens the commission’s oversight to include digital assets and aims to channel speculative activity into regulated investments.
“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 propose practical and forward-looking measures to enhance liquidity and align the market with the federal government’s ambition of building a trillion-dollar economy.
While describing recent gains in market capitalisation and GDP contribution as significant progress, he stressed that the next phase of reform must prioritise depth, inclusiveness and global competitiveness, not just expansion in size.
