Nigeria’s capital market expansion accelerates, but regulators warn liquidity gaps could threaten long-term sustainability.
Nigeria’s capital market contribution to GDP has risen to 33%, up from 13% in April 2024, as total market capitalisation surged from ₦55 trillion to over ₦123.93 trillion, according to the Securities and Exchange Commission Nigeria.
Director-General Dr. Emomotimi Agama described the growth as historic but stressed that scale alone is insufficient. Trading remains concentrated in a handful of large-cap stocks, while high transaction costs and shallow depth continue to limit broader participation.
To address this, the SEC has inaugurated a Capital Market Working Group on Liquidity to improve settlement efficiency, reduce structural bottlenecks and expand retail access through digital onboarding. The recently enacted ISA 2025 also broadens oversight to include digital assets.
Regulators say the next phase focuses on deepening liquidity, strengthening price discovery and ensuring sustainable capital formation.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
