Nigeria’s capital market is in the middle of a historic transformation. During his recent state visit to Brazil, President Bola Tinubu told the leadership of the Securities and Exchange Commission (SEC) and NGX Group that his administration’s reforms are turning the Exchange into a trusted engine of growth and positioning Nigeria as Africa’s premier investment hub.
“Nigeria’s markets must be a trusted engine of enterprise and prosperity. My government will continue to pursue reforms that unlock capital, protect investors, and drive innovation,” Tinubu said.
From Reform to Results
The results are already visible:
-
Market values and trading volumes have nearly tripled since Tinubu took office.
-
In the first seven months of 2025 alone, equities transactions hit ₦6 trillion, the highest seven-month tally in 18 years.
-
Nigeria’s Exchange has doubled its market cap in just 18 months to about $90 billion, covering equities, fixed income, derivatives, and alternatives.
This surge reflects both domestic confidence (over 90% of trades in July came from local investors) and renewed foreign interest, with block trades lifting July transactions to ₦1.8 trillion — the single highest monthly volume on record.
The ISA 2025 Catalyst
SEC DG Emomotimi Agama pointed to the newly signed Investment and Securities Act (ISA) 2025 as a game-changer. Described as one of Africa’s most comprehensive market frameworks, the Act aims to propel Nigeria toward a ₦300 trillion market by tightening investor protection and boosting regulatory clarity.
Next Frontiers: SOE Listings & Retail Expansion
But the big leap will depend on two things:
-
Listing of state-owned enterprises (SOEs) like NNPC Limited — a move NGX chairman Umaru Kwairanga says could unlock trillions in market value.
-
Retail participation via digital channels — NGX CEO Temi Popoola stressed that expanding access for ordinary Nigerians is key to inclusive and sustainable market growth.
Popoola also underscored Nigeria’s role as a gateway for cross-border capital flows, linking the Exchange’s growth to initiatives like the African Exchanges Linkage Project and its recent stake in the new Ethiopia Stock Exchange.
Why It Matters for Investors
-
Returns remain strong: Nigerian equities have returned around 40% year-to-date.
-
Confidence is rising: Exchange rate stability and predictable policy under the Renewed Hope Agenda are drawing capital.
-
Momentum is real: With market activity at multi-decade highs, investors — local and foreign — are betting that Tinubu’s reforms are more than rhetoric.
The question now is whether the administration can keep this momentum going by pushing through SOE listings, tax incentives, and digital adoption. If so, Nigeria’s NGX may not just be Africa’s second-largest bourse by transaction size — it could become the continent’s most dynamic growth engine.
