The Nigerian capital market has dramatically expanded its economic footprint, with its contribution to the country’s Gross Domestic Product rising from 13% in April 2024 to approximately 33% as of February 2026, according to Dr Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC).
In a statement released on February 23, 2026, Agama highlighted that total market capitalisation has more than doubled—from around N55 trillion in April 2024 to over N123.93 trillion by mid-February 2026—representing a remarkable 125% appreciation in less than two years.
Agama made the disclosure during his inaugural address to the newly formed Capital Market Working Group on Market Liquidity at the SEC’s Lagos office. He described the figures as a testament to growing investor confidence and the market’s resilience under the current administration, while cautioning that size alone is insufficient without corresponding improvements in depth and liquidity.
“These are impressive numbers, but they only tell part of the story,” Agama said. “A capital market must be more than large—it must be liquid to accurately reflect economic health and fulfil its core role in capital formation.”
He identified persistent structural challenges hindering greater efficiency, including elevated transaction impact costs for institutional investors and heavy concentration of trading activity in a small number of large-cap stocks. This concentration, he noted, leaves much of the market relatively shallow, potentially deterring investors concerned about exit liquidity and price impact.
To tackle these issues head-on, the SEC has established a multi-stakeholder working group comprising representatives from exchanges, custodians, fund managers, dealing members, and other key operators. The committee’s primary mandate includes:
– Conducting a thorough review of trading and settlement infrastructure
– Identifying technical and structural barriers to faster, more efficient transactions
– Proposing measures to make Nigeria’s settlement cycle more competitive regionally
– Recommending strategies to broaden retail investor participation, targeting up to 20 million new investors through digital onboarding, dematerialisation of certificates, and fintech collaborations
– Accelerating product innovation, particularly in derivatives and other hedging instruments to deepen market activity
Agama also pointed to the recently enacted Investments and Securities Act 2025, which expands SEC oversight to digital assets. He expressed optimism that this framework could channel speculative interest into regulated, productive channels.
Emphasising the capital market’s broader developmental role, Agama stated: “This is not gambling—it is the engine of national development. It finances infrastructure, powers industries, and creates jobs.”
The SEC chief urged the working group to deliver bold, actionable recommendations that align with the Federal Government’s ambition to build a trillion-dollar economy. While celebrating recent gains, he stressed that the next phase of reform must focus on transforming the market into one that is not only substantial but also deep, inclusive, and globally competitive.
Responding on behalf of the committee, NGX Group Chief Executive Officer Temi Popoola thanked the SEC for the mandate and assured that the group would approach its task with candour—diagnosing constraints, aligning on practical reforms, and delivering measurable outcomes to enhance liquidity, restore confidence, and strengthen overall market resilience.
The surge in market capitalisation and GDP contribution underscores the capital market’s growing importance in Nigeria’s economic landscape. Sustained reforms to improve liquidity and broaden participation are now seen as critical to translating headline growth into long-term, inclusive development.
