Nigeria’s capital market value surges to N123trn as stocks gain 34% in 2026

NIGERIA’s capital market has expanded sharply over the past two years, with total market capitalisation climbing by 125 percent to more than N123.93 trillion from about N55 trillion recorded in April 2024, according to the Securities and Exchange Commission (SEC). This is as the stock benchmark index gained 34.4 percent in dollar terms year-to-date as of February 20.

The Director-General of the SEC, Dr Emomotimi Agama, disclosed this in Lagos while speaking to members of the capital market working group on market liquidity. A statement issued on Sunday quoted him as saying the growth reflects significant strides made under the current administration.

Agama noted that the market’s role in the broader economy has also strengthened within the same period. He said the capital market’s contribution to Nigeria’s gross domestic product rose from 13 percent to 33 percent, underscoring its expanding influence on national output.

“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, adding that the jump in GDP contribution demonstrates tangible progress. However, he cautioned that the headline numbers capture only part of the broader transformation underway in the sector.

READ ALSO: As foreign funds pull back, Nigerian capital quietly reshapes the market

According to him, the surge in valuation signals growing investor confidence and highlights the resilience and stability of Nigeria’s capital market. He attributed the performance to reforms and policy measures aimed at strengthening the regulatory environment and improving transparency.

Despite the impressive expansion in size, Dr Agama stressed that scale alone is not enough to guarantee a healthy market. He explained that a truly functional capital market must also possess sufficient depth and liquidity to support efficient trading activities.

Describing the capital market as a barometer of economic health, the SEC chief said the measure can only be accurate when investors are able to enter and exit positions seamlessly. Weak liquidity, he warned, could discourage participation, particularly among institutional investors concerned about price distortions when offloading large holdings.

To address this challenge, Dr Agama called for accelerated product innovation and the introduction of more sophisticated instruments. He pointed to the need for faster development of derivatives and other asset classes that can facilitate hedging, diversify risk, and stimulate trading activity.

He further highlighted the role of the newly enacted Investments and Securities Act (ISA) 2025, noting that it broadens the commission’s regulatory mandate to include digital assets. This, he said, would help channel speculative appetite into structured and supervised investment platforms.

Reiterating the broader purpose of the market, Agama said it serves as a catalyst for economic development rather than a speculative arena, emphasising that capital market financing supports infrastructure projects, powers industrial growth, while creating employment opportunities across sectors.

READ ALSO: Stocks surge N970bn as pension funds fuel market rally

The SEC boss urged members of the liquidity working group to put forward bold and practical recommendations capable of strengthening trading activity and supporting the Federal Government’s ambition of building a trillion-dollar economy.

While acknowledging the substantial rise in market capitalisation and GDP contribution, Dr Agama maintained that the next phase of reform would prioritise deepening participation, enhancing inclusiveness, and positioning Nigeria’s capital market to compete effectively on the global stage to ensure it becomes not just larger, but stronger and more dynamic.