Capital Market Contribution to GDP Now 33% – SEC
Nigeria’s capital market now contributes 33% to GDP, with total market capitalisation rising to ₦123.93 trillion, up 125% from ₦55 trillion in April 2024, according to the Securities and Exchange Commission (SEC).
SEC Director-General Dr. Emomotimi Agama disclosed the figures during his inaugural address to the Capital Market Working Group on Market Liquidity in Lagos, describing the growth as historic but cautioning that deeper liquidity is needed to sustain momentum.
“Since this administration came into being in April 2024, we have seen market capitalisation grow from about ₦55 trillion to over ₦123.93 trillion. Our contribution to GDP has moved from 13% to 33%. These are impressive figures, but they tell only part of the story,” Agama said.
He emphasised that a capital market must be liquid to serve as a reliable barometer of economic health. “The capital market is not gambling; it is the engine of national development. It finances roads, powers factories and creates jobs,” he added.
Despite expansion, structural challenges persist. Trading remains concentrated in a few highly capitalised stocks, leaving many equities illiquid. High transaction costs also affect institutional investors, limiting efficiency and weakening investor appetite.
To address these issues, SEC inaugurated a multi-stakeholder Working Group comprising exchanges, custodians, fund managers, and dealing members. The committee will review trading and settlement infrastructure, propose reforms to strengthen liquidity, and make Nigeria’s settlement cycle more competitive.
The SEC also targets onboarding up to 20 million new retail investors through digital platforms, dematerialisation of share certificates, and fintech partnerships. Product innovation, including derivatives and new asset classes, is expected to expand hedging opportunities and deepen activity.
Agama noted that the Investments and Securities Act (ISA) 2025 has expanded regulatory oversight to digital assets, creating opportunities to channel speculative activity into regulated and productive investment vehicles.