The Nigerian capital market’s contribution to the nation’s Gross Domestic Product has increased to 33 per cent from 13 per cent.

This rise follows a N68.93 trillion growth in market capitalisation since April 2024.

The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, made this disclosure during his inaugural address to the newly launched Capital Market Working Group on Market Liquidity.

He noted that market capitalisation has more than doubled, rising from about N55 trillion to over N123.93 trillion within the period under review.

Dr Agama highlighted a remarkable 125 per cent growth in the market, which translated to the N68.93 trillion increase in capitalisation since April 2024. He described the figures as evidence of strong investor confidence and the resilience of the Nigerian capital market under the current administration.

He cautioned, however, that size alone is not enough without corresponding market depth and liquidity.

“Since this administration came into being in April 2024, we have seen market capitalisation grow from about N55 trillion to over N123.93 trillion. 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.

Agama stressed that liquidity is essential to sustaining the growth momentum. He explained that a market must be deep and efficient to effectively perform its primary function of capital formation.

He described the capital market as often regarded as the barometer of an economy’s health, but emphasised that for it to be accurate, the market must be more than just large — it must be liquid.

He pointed out key structural challenges, including high transaction impact costs for institutional investors and the concentration of trading activity in a limited number of highly capitalised stocks. This situation leaves the broader market relatively shallow.

He warned that without sufficient liquidity, investors may hesitate to enter the market due to uncertainty about exiting positions without significant price distortions.

To tackle these issues, the SEC inaugurated a multi-stakeholder Working Group. The group includes exchanges, custodians, fund managers, dealing members, and other market operators.

The Working Group is tasked with developing practical recommendations to improve trading efficiency, deepen participation, and enhance price discovery. It is also required to propose measures to broaden retail participation.

The SEC targets onboarding up to 20 million new investors through digital platforms, dematerialisation of share certificates, and fintech partnerships.

Agama stated that product innovation will play a central role in improving liquidity. He highlighted the accelerated development of derivatives and other asset classes to provide hedging opportunities and stimulate market activity.

He added that the recently enacted Investments and Securities Act 2025 has expanded the Commission’s regulatory oversight to include digital assets. This creates an opportunity to direct speculative interest into regulated and productive investment channels.

He urged members of the Working Group to deliver bold and practical recommendations capable of strengthening liquidity and supporting the Federal Government’s ambition of building a trillion-dollar economy.

The Chairman of the Committee and Group Chief Executive Officer of NGX, Mr Temi Popoola, commended the SEC for the initiative. He assured that the team understands its mandate and will diagnose structural constraints with candour, align on practical reforms, and deliver measurable actions to deepen liquidity, restore confidence, and strengthen market resilience.

Nigeria’s capital market has maintained an upward trajectory since January 2026, building on momentum from late 2025. This performance is supported by regulatory reforms and improving macroeconomic stability.

Market capitalisation increased from N150.9 trillion at the end of 2025 to N217.7 trillion by mid-January 2026. Equities accounted for N166.13 trillion of the total.

The All-Share Index climbed above 165,000 points, driven by strong activity in the banking and industrial sectors.

In the first trading week of February, from 30 January to 5 February, market capitalisation rose by N4.08 trillion. The ASI reached 171,727 points, marking a year-to-date gain of 10.4 per cent.

Key sectoral performances included Oil and Gas at 10.9 per cent, Industrials at 4.4 per cent, and Banking at 3.6 per cent. Trading volume surged by 53.5 per cent.

Analysts attribute the sustained gains to the SEC’s updated capital requirements for market operators, product innovations such as derivatives, expanded retail investor participation initiatives, improved corporate earnings, and renewed foreign portfolio inflows.

Market observers note that these developments position the capital market for measured and sustainable growth, provided liquidity challenges are effectively addressed.