Nigeria's capital market has increased significantly over the years with total market capitalisation rising by 125 per cent from about N55 trillion in April 2024 to over N123.93 trillion.
The Director-General of the Securities and Exchange Commission, Emomotimi Agama, disclosed this in Lagos during his inaugural address to members of the Capital Market Working Group on Market Liquidity.
Agama said the capital market's contribution to the nation's Gross Domestic Product also rose sharply within the same period, increasing from 13 per cent to 33 per cent.
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According to a statement issued by the commission on Sunday, the SEC chief said: "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 noted that while the growth indicators were significant, sustained reforms and improved market liquidity would be critical to consolidating the gains.
He explained that the figures show rising investor confidence and the ability of the Nigerian capital market to withstand economic pressure, but warned that size alone is not enough to guarantee long-term strength.
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"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.
Agama however admitted that liquidity, which determines how easily investors can buy or sell shares without affecting prices, remains a key issue.
He pointed out that high transaction costs for big investors and the concentration of trades in only a few highly capitalised stocks still limit the depth of the market.
Commenting further, the SEC DG noted that an initiative is in place to bring in more ordinary Nigerians into the market.
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