Market’s GDP contribution jumps to 33% as regulator shifts focus to liquidity and deeper reforms….
Nigeria’s capital market has recorded a 125 percent surge in market capitalisation since April 2024, climbing from about N55 trillion to more than N123.93 trillion, the Securities and Exchange Commission has disclosed.
The Director-General of the commission, Emomotimi Agama, announced the milestone while addressing members of the capital market working group on liquidity in Lagos, according to a statement released on Sunday.
Agama also revealed that the market’s contribution to Nigeria’s Gross Domestic Product (GDP) rose sharply within the same period from 13 percent to 33 percent.
“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.
“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.”
Beyond size: The liquidity challenge
While describing the performance as evidence of growing investor confidence and market resilience under the current administration, Agama cautioned that expansion in size alone is not enough.
“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.
He warned that weak liquidity could discourage investors, particularly those concerned about their ability to exit positions without triggering price distortions.
According to the SEC chief, strengthening liquidity will require product innovation and faster development of new asset classes especially derivatives to support hedging strategies and deepen trading activity.
Digital assets and regulatory expansion
Agama pointed to the newly enacted Investments and Securities Act (ISA) 2025 as a critical reform milestone, noting that the legislation expands the commission’s oversight to cover digital assets.
The expanded mandate, he said, will help channel speculative interest into properly regulated investment structures while enhancing investor protection.
“The capital market is not gambling; it is the engine of national development. It finances roads, powers factories and creates jobs,” he stated.
Next phase: Depth, inclusion, global competitiveness
Calling on members of the working group to submit bold and practical recommendations, Agama said the next reform phase will prioritise deepening the market, improving inclusiveness and strengthening global competitiveness.
He linked the reform drive to the Federal Government’s broader ambition of building a trillion-dollar economy, stressing that sustained growth will depend not just on headline numbers, but on structural strength.
Although the jump in market capitalisation and GDP contribution underscores rapid expansion, the SEC’s message was clear: the future of Nigeria’s capital market lies not merely in becoming bigger, but in becoming deeper, more liquid and globally aligned.
