By Peter Omopo
Nigeria’s market capitalisation has surged by 125 per cent since April 2024, rising from about N55 trillion to over N123.93 trillion, according to the Securities and Exchange Commission (SEC).
Director-General of the SEC, Emomotimi Agama, disclosed the figures in Lagos while addressing members of the Capital Market Working Group on market liquidity.
Agama said the significant growth recorded since the current administration assumed office in April 2024 reflects increasing investor confidence and resilience within the capital market.
“Since this administration came into being in April 2024, we have seen market capitalisation grow from about N55 trillion to over N123.93 trillion,” he said.
He also revealed that the capital market’s contribution to Nigeria’s Gross Domestic Product (GDP) rose substantially 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 stated.
Despite the remarkable growth, Agama cautioned that size alone does not determine the strength of a capital market. He emphasised that liquidity remains a critical factor in ensuring long-term stability and efficiency.
“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, inadequate liquidity could discourage investors who may be concerned about exiting positions without triggering price distortions.
To address this, the SEC boss called for product innovation, including the accelerated development of derivatives and other asset classes to enable effective hedging strategies and deepen trading activity.
Agama also highlighted the newly enacted Investments and Securities Act (ISA) 2025, which expands the SEC’s regulatory oversight to include digital assets. He explained that the move is designed to channel speculative activities into structured and regulated investment platforms.
“The capital market is not gambling; it is the engine of national development. It finances roads, powers factories and creates jobs,” he said.
He urged the liquidity working group to propose bold and practical reforms that will align with the Federal Government’s ambition of building a trillion-dollar economy.
While noting that the sharp rise in market capitalisation and GDP contribution signals strong progress, Agama stressed that the next phase of reforms would focus on strengthening market depth, inclusiveness and global competitiveness.
“The objective is to build a market that is not just bigger, but stronger and more efficient,” he added.
