Nigeria Capital Market Contribution to GDP Climbs to 33% as Market Value Surges Above ₦123.93 Trillion
Capital Market Growth Drives Increased Economic Impact in Nigeria
Nigeria’s capital market has significantly increased its contribution to the nation’s Gross Domestic Product (GDP), rising to 33 per cent as total market capitalisation exceeded ₦123.93 trillion, according to figures disclosed by the Securities and Exchange Commission (SEC) on February 22, 2026. The growth reflects a 125 per cent expansion in market value from about ₦55 trillion in April 2024 within the current administration’s tenure.
Capital Market’s Expanding Economic Footprint
Rapid Growth in Market Capitalisation
In his inaugural address to the Capital Market Working Group on Market Liquidity, SEC Director-General Dr Emomotimi Agama highlighted the remarkable expansion of the Nigerian capital market since April 2024. Total market capitalisation surged from roughly ₦55 trillion to over ₦123.93 trillion, representing a 125 per cent increase within 23 months. This rise underscores robust investor confidence and heightened market participation in the equities and fixed-income segments.
GDP Contribution: From 13% to 33%
Alongside the surge in market value, the capital market’s share of Nigeria’s GDP climbed from 13 per cent to 33 per cent over the same period. This upward shift highlights the sector’s growing importance as a driver of economic activity and a facilitator of long-term investment in the economy.
Structural Challenges and Reform Priorities
Liquidity and Market Depth Concerns
Despite the headline growth in capitalisation and GDP contribution, Dr Agama cautioned that size alone does not equate to a fully functioning capital market. He emphasised the importance of liquidity and market depth as critical determinants of sustainable market development. Without efficient trading mechanisms and sufficient liquidity, investors may be reluctant to commit capital due to concerns over exit costs and price volatility.
Concentration of Trading Activity
Another structural issue noted by the SEC DG is the concentration of trading in a narrow set of highly capitalised stocks. While these market leaders contribute significantly to overall market value, the broader market remains relatively shallow, limiting broad-based participation and resilience against market shocks.
Strategic Initiatives and Policy Outlook
Working Group on Market Liquidity
To address these structural constraints, the SEC inaugurated a multi-stakeholder Capital Market Working Group on Market Liquidity. The group brings together exchanges, custodians, fund managers, dealing members, and other market operators tasked with developing practical reforms to strengthen market liquidity and trading efficiency.
Retail Investor Expansion and Innovation
The SEC has also signalled intentions to broaden retail investor participation by leveraging digital platforms, advancing the dematerialisation of share certificates, and deepening fintech partnerships. In addition, the recently enacted Investments and Securities Act (ISA) 2025 expands regulatory oversight to include digital assets, opening avenues for structured investment products and hedging instruments.
Economic and Policy Significance
Capital Market as a Growth Engine
Dr Agama described the capital market as a central pillar of economic development, capable of financing infrastructure projects, powering industrial expansion, and fostering job creation. Its increasing contribution to GDP reinforces its role in mobilising long-term capital for productive use across sectors.
Policy Implications
The marked growth presents opportunities for policymakers to embed capital market development within broader economic reform frameworks. Enhanced regulatory clarity, improved market infrastructure, and investor education are key levers that could support deeper financial market participation and broader economic impact.
The Nigerian capital market’s leap to a 33 per cent contribution to GDP, driven by substantial gains in market capitalisation, marks a pivotal milestone in the country’s financial evolution. While the figures reflect strengthened investor confidence, experts and regulators alike acknowledge that deepening liquidity, expanding participation, and addressing structural constraints remain essential to translating headline growth into sustainable, inclusive economic outcomes. Continued reforms and strategic policy interventions will be crucial to ensuring that the capital market fulfils its potential as a long-term engine of national development.
