February 22, (THEWILL) — Nigeria’s capital market has recorded a historic expansion, with total market capitalisation rising to over ₦123.9 trillion and its contribution to the nation’s Gross Domestic Product (GDP) increasing to 33 percent.
The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, disclosed this on Sunday during his inaugural address to members of the Capital Market Working Group on Market Liquidity in Lagos.
Agama said the market capitalisation has grown by about 125 percent, climbing from roughly ₦55 trillion in April 2024 to ₦123.93 trillion, reflecting renewed investor confidence and resilience under the current administration. He noted that the capital market’s share of GDP has also risen sharply from 13 percent to 33 percent within the same period.
“Since this administration came into being in April 2024, we have seen market capitalisation grow from about ₦55 trillion to over ₦123.93 trillion. Our contribution to GDP has moved from 13 percent to 33 percent. These are impressive figures, but they tell only part of the story”, Agama said.
While welcoming the growth as unprecedented, Agama cautioned that headline numbers alone do not fully reflect the health of the market. He stressed that liquidity remains critical to sustaining the momentum and ensuring long-term stability and investor confidence.
“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. The capital market is not gambling; it is the engine of national development. It finances roads, powers factories and creates jobs”, he said.
Agama acknowledged that despite the sharp rise in market value, structural challenges persist. He identified high transaction impact costs for institutional investors, concentration of trading activities in a few highly capitalised stocks, and limited liquidity across a large number of listed equities as key concerns.
According to him, inadequate market depth could weaken investor appetite if participants are uncertain about their ability to enter and exit positions without significant price distortions. He added that a functional capital market must allow seamless trading at minimal cost.
As part of efforts to address these challenges, the SEC has launched a liquidity reform drive under its broader 2026 agenda aimed at stimulating long-term capital formation and broadening investor access.
The Capital Market Working Group on Market Liquidity, inaugurated at the event, brings together key market stakeholders to tackle high transaction costs and limited trading depth. Regulators say the initiative is designed to deliver measurable reforms that enhance trading efficiency, restore confidence, and ensure that recent gains in market capitalisation translate into sustainable and inclusive economic growth.
The SEC further noted that its broader strategy is focused on mobilising long-term capital to bridge Nigeria’s infrastructure gaps and support sustained economic expansion.
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