Nigerian Capital Market Capitalisation Surges 125% to N123.93 Trillion in 23 Months
Nigeria's capital market has recorded exceptional growth with capitalisation rising from N55 trillion in April 2024 to over N123.93 trillion, now contributing 33% to GDP, according to the Securities and Exchange Commission.
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Nigeria's capital market has achieved a 125 percent surge in market capitalisation over a 23-month period, climbing from approximately N55 trillion in April 2024 to over N123.93 trillion, the Securities and Exchange Commission (SEC) disclosed in a statement this week.
The expansion has elevated the capital market's contribution to Nigeria's Gross Domestic Product to 33 percent, marking a significant milestone for Africa's largest economy as it seeks to diversify funding sources beyond traditional bank lending and oil revenues. The growth trajectory positions Nigeria's equity market among the fastest-growing in sub-Saharan Africa during the review period.
Regulatory Framework and Market Performance
SEC Director-General Dr. Emomotimi Agama announced the figures during his inaugural address to capital market stakeholders, highlighting the market's resilience amid challenging macroeconomic conditions including elevated inflation and currency volatility. The N68.93 trillion absolute increase in market capitalisation represents one of the steepest growth phases in the Nigerian Stock Exchange's history.
"The Nigerian capital market has recorded a remarkable 125 per cent growth in market capitalisation over the past 23 months," Dr. Agama stated, according to reports from the commission's stakeholder engagement. The period under review coincides with the Central Bank of Nigeria's monetary tightening cycle, which saw the benchmark interest rate rise to 27.50 percent by February 2026 from 18.75 percent in April 2024.
The market expansion occurred despite significant headwinds including the naira's depreciation against major currencies and persistent double-digit inflation that reached 34.80 percent year-on-year in December 2025, according to the National Bureau of Statistics. Investor appetite for equities appears driven by expectations of corporate earnings growth, particularly in the banking, consumer goods, and telecommunications sectors.
Sectoral Drivers and Foreign Participation
Banking sector recapitalisation efforts mandated by the CBN have contributed substantially to market activity, with tier-1 banks raising capital through rights issues and public offerings totaling over N3 trillion during the period. The insurance and pension sectors have also emerged as significant domestic institutional investors, channeling long-term funds into equities as regulatory frameworks encourage local asset allocation.
The 33 percent GDP contribution metric places Nigeria's capital market ahead of several regional peers in terms of relative economic significance. South Africa's JSE maintains market capitalisation equivalent to approximately 280 percent of GDP, while Kenya's NSE represents roughly 25 percent of GDP, according to World Bank capital markets data. Nigeria's ratio has improved from approximately 15 percent in early 2024, reflecting both nominal market gains and naira depreciation effects on dollar-denominated GDP calculations.
Foreign portfolio investment flows have shown volatility, with international investors balancing Nigeria's high nominal returns against currency risk and liquidity concerns. The Nigerian Stock Exchange All-Share Index recorded gains exceeding 90 percent in naira terms during the review period, though dollar-adjusted returns remained more modest due to the naira's approximately 70 percent depreciation against the US dollar from April 2024 levels.
Market Infrastructure and Outlook
SEC's regulatory initiatives during the period included enhanced disclosure requirements, faster approval processes for capital raises, and expanded product offerings including Real Estate Investment Trusts and infrastructure bonds. The commission has prioritized market integrity measures, implementing stricter corporate governance standards and surveillance systems to detect irregular trading patterns.
Market analysts project continued growth contingent on macroeconomic stability and sustained corporate profitability. "The capital market's expansion reflects improved investor confidence, but sustainability depends on inflation moderation and exchange rate stability," noted a February 2026 report from Chapel Hill Denham, a Lagos-based investment bank. The firm forecasts market capitalisation could reach N150 trillion by December 2026 if current momentum persists and the CBN's inflation targeting proves effective.
Challenges facing the market include liquidity constraints in second and third-tier stocks, limited retail investor participation relative to institutional dominance, and the need for deeper fixed-income market development to provide yield curve benchmarks. The SEC has indicated plans to introduce additional derivative products and expand the investor base through financial literacy programs targeting Nigeria's growing middle class.
The capital market's performance contrasts with Nigeria's broader economic indicators, including a fiscal deficit projected at 4.8 percent of GDP for 2026 and public debt exceeding N150 trillion. However, the market's ability to mobilize private capital offers policymakers an alternative financing mechanism for infrastructure development and corporate expansion as the government pursues economic diversification beyond oil dependency.