Experts attribute capital market growth to improved investors ‘ confidence, banks’ recapitalisation
Abuja, Sept. 2026 (TBL Africa) Some experts in the capital market have attributed banks’ recapitalisation and increasing investors’ confidence as factors behind the growth of the market.
The experts who spoke in Abuja on Sunday, said that the capital market, particularly equities and fixed income securities had become more attractive.
Dr Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), said the country’s capital market had recorded a remarkable 125 per cent growth in market capitalisation since April 2024.
Agama said the figure rose from about N55 trillion to more than N123.93 trillion in the first quarter of 2026.
Agama said the market’s contribution to the Gross Domestic Product (GDP) had increased significantly from 13 per cent to 33 per cent within the same period, underscoring the sector’s expanding role in economic development.
The SEC boss described the growth as evidence of strong investor confidence and the resilience of the Nigerian capital market under the current administration.
He said that the market size alone was not enough without corresponding depth and liquidity.
According to him, liquidity remains critical to sustaining the growth momentum, and that a market must be deep and efficient to effectively perform its primary function of capital formation.
”A capital market is often described as the barometer of an economy’s health.
”For that barometer to be accurate, the market must be more than just large, it must be liquid,” he said.
Agama said that without sufficient liquidity, investors might be reluctant to enter the market if they were uncertain about their ability to exit positions without significant price distortions.
According to him, Nigeria’s capital market has demonstrated considerable resilience in the face of the headwinds such as the regulatory reforms.
He said the reforms included the introduction of electronic offerings, the deepening of the bond market, which had begun to bear fruit in attracting renewed investor interest.
Agama said that the expansion of alternative investment platforms, and the SEC’s engagement with sustainable finance principles were also yielding the desired results.
Prof. Uche Uwaleke, the President, Capital Market Academics of Nigeria (CMAN), said that the increasing patronage of the country’s capital market, particularly by retail investors, was due to the outstanding performance of the equities market.
Uwaleke said the stock market had seen strong rallying with the year-to-date market return reaching about 60 per cent.
”Naturally, when investors see this kind of performance, it attracts attention and encourages more people to consider the capital market as a viable avenue for wealth creation.
”With inflation having significantly eroded the purchasing power of money, retail investors are increasingly looking for asset classes that can provide returns capable of beating inflation.
”The capital market, particularly equities and to some extent, fixed income securities, has therefore become more attractive,” he said.
He said that another factor that had fuelled the growth in the market was the recapitalisation of the banking sector, noting that it had pushed many banks to the capital market to raise fresh capital, which had generated considerable interest and activity in the market.
Uwaleke said that many Nigerians who may previously had paid little attention to the stock market were now becoming more interested because of the opportunities associated with bank recapitalisation and the broader investment opportunities it had created.
He said the increased sensitisation and investor awareness activities were beginning to yield results.
”The efforts of the SEC, the NGX, the CIS, and the Capital Market Academics of Nigeria, among others in educating the public and creating awareness about investment opportunities and the workings of the capital market have contributed to the growing interest of retail investors.
”The more people understand the market and appreciate that investment is not exclusively for large institutional investors or wealthy individuals, the greater the likelihood of their participation.”
He said that was why he viewed the country’s transition to T+ 1 transaction cycle as a positive development.
He called on market operators to continue to develop products that catered to different investor profiles and risk appetites, while regulators should ensure that the market remained properly supervised and that investors had confidence on the integrity of the system.
Uwaleke also called for greater transparency by listed companies, timely disclosure of information, effective regulation, strong corporate governance and prompt action against market abuse.
Prince Ridhwan Hamza, the Secretary-General, Liberated Shareholders’ Association, said the market had experienced a surge in patronage in recent times.
This he attributed to investment on education and enlightenment, occasioned by various shareholders’ associations efforts at driving down the unclaimed dividends.
Hamza, an investor in the market, said the surge had been caused the regulators drive to bring Blue chips companies to get listed.
“These are being fanned by the much publicised DRPC’s IPO and expected listing.
”The social media, the get rich quick syndrome and the various influencers contributions cannot be relegated either.
”My advice to the regulators is to engage the shareholders’ associations and other operators the more, protect investors funds and rights, and reasonably enforce regulations and rules, not just fines and penalties, even when they facilitate the infraction.
”As for operators, there is a need to bolster the efforts of those associations and regulators, there is need to do more research based investments and advice accordingly, not unnecessary manipulations,” he suggested.
Mrs Bisi Bakare, the Coordinator, Pragmatic Shareholders Association, said the increasing patronage and awareness of capital market by retail investors was due to the restoration of investors confidence by both the regulators and market stakeholders in the market.
Bakare, also an investor in the market, said the increase in patronage was also due to the economic stability, positive financial result and good returns of dividends to investors.
According to her, we have also seen good market rally which has resulted into capital appreciation on investment.
She called for improved awareness through various medium to attract more investors.
Bakare suggested the inclusion of capital market studies in secondary schools’ curriculum to catch them young and imbibe the culture of investment in children early in life.
Mr Moses Igbrude, the National Coordinator, Independent Shareholders Association of Nigeria, said the increase in the market patronage was as a result of the confidence that investors currently had in the market.
Igbrude said the confidence was built due to the just concluded recapitalisation of the bank and insurance sectors.
He said that to sustain the growth trajectory, all stakeholders must play their roles well.
”Regulators should up their game by making sure that all players comply with the rules and regulations in the market.
”Sound, good corporate governance should continue to be the watchword.
”All operators in the market should act according to lay down rules and deliver good results and performance within the ambit of regulatory framework,” he said.
