Nigeria's Capital Market Growth and Liquidity Reforms
Analysis based on 12 articles · First reported Feb 22, 2026 · Last updated Feb 23, 2026
The Nigerian capital market's significant growth in market capitalization and GDP contribution indicates strong investor confidence. The ongoing reforms by the Nigeria===Securities and Exchange Commission (Nigeria) to enhance liquidity and efficiency are expected to further strengthen the market, attracting more investors and supporting Nigeria's economic development goals.
Nigeria's capital market has experienced a remarkable 125% growth in market capitalization since April 2024, reaching over N123.93 trillion, and its contribution to the nation's GDP has surged from 13% to 33%. Dr. Emomotimi Agama, Director-General of the Nigeria===Securities and Exchange Commission (Nigeria), announced these figures during his inaugural address to the Capital Market Working Group on Market Liquidity. While acknowledging the impressive growth, Agama stressed the critical need for deeper liquidity and efficiency to sustain momentum and ensure the market effectively performs its capital formation function. He identified structural challenges such as high transaction costs and concentration of trading in a few highly capitalized stocks. To address these, the Nigeria===Securities and Exchange Commission (Nigeria) has inaugurated a multi-stakeholder Working Group tasked with developing recommendations to improve trading efficiency, deepen participation, and enhance price discovery. The reforms also include targeting 20 million new retail investors through digital platforms and expanding regulatory oversight to digital assets via the Investments and Securities Act (ISA) 2025. Temi Popoola, Group CEO of Nigerian Exchange Group, chairs the Working Group.
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