The Nigerian Exchange (NGX) Group has projected that the total market value of companies listed on the Nigerian Stock Exchange (NGX) could rise to N230 trillion by the end of 2026, underscoring the growing importance of the capital market as a key driver of Nigeria’s economic transformation.
The Group Managing Director and Chief Executive Officer of NGX Group, Mr Temi Popoola, disclosed this while highlighting the significant expansion of the Nigerian capital market since the administration of President Bola Tinubu assumed office in May 2023.
According to Popoola, the total value of companies listed on the Nigerian market was just shy of N30 trillion when the administration took office. He said the figure had subsequently increased substantially to about N160 trillion.
“Today, Mr President, that figure is N160 trillion. And by the end of this year, with the significant activity that we expect in our market, we expect that figure to be N230 trillion,” Popoola said.
The projection represents a major increase in the value of listed companies and reflects the strong performance of the equities market, increased investor participation and growing activity in the primary market.
Popoola said the strong performance of the Nigerian capital market reflected growing confidence in the direction of the economy, noting that the significant growth in market capitalisation, domestic participation and primary-market activity demonstrated the depth of investor appetite and the increasing capacity of the market to support economic growth.
He, however, stressed that the next challenge was to translate the strong performance of the market into sustainable capital formation and broader economic development.
He said the opportunity before Nigeria was to convert market growth into a sustained cycle of capital formation, enterprise expansion, infrastructure development and broad-based wealth creation.
“A trillion-dollar economy requires deep pools of long-term domestic and international capital. The capital market must therefore become one of the principal mechanisms through which Nigeria finances its leading companies, infrastructure and productive sectors,” Popoola said.
The NGX Group chief executive argued that the development of a deeper capital market would be critical to Nigeria’s ambition of achieving a larger and more diversified economy.
He noted that the capital market could provide businesses and governments with access to long-term funding required to finance expansion, infrastructure and productive investments, while also providing investors with opportunities to participate in the country’s economic growth.
To further deepen the market’s contribution to national development, NGX Group proposed four strategic priorities.
These include the privatisation and listing of commercially viable government assets, domestic or dual listing of leading Nigerian companies, greater policy clarity on the capital gains tax treatment of listed securities, and increased utilisation of capital market instruments to finance infrastructure and industrial development.
The proposed measures are expected to expand the number and value of companies listed on the exchange, improve market liquidity and attract additional domestic and international capital.
The push for the listing of commercially viable government-owned assets could also provide an opportunity to broaden public ownership while helping the government unlock value from productive assets and raise funds for development.
Similarly, encouraging leading Nigerian companies with substantial operations to list domestically or pursue dual listings could deepen the equities market and increase investment opportunities for Nigerian investors.
The projection of N230 trillion in market value by the end of 2026 therefore represents not only an indication of market growth but also a test of the capacity of the Nigerian capital market to support the country’s broader economic ambitions.
For NGX Group, the ultimate objective is to ensure that rising market capitalisation translates into increased capital formation, stronger businesses, infrastructure investment and sustainable wealth creation across the economy.
Source: Business Archives – New Telegraph
