Capital Market: Contribution to GDP Soars to 33% with N68.83trn growth

BY BONNY AMADI

Nigeria’s capital market has recorded a remarkable 125 per cent growth in market capitalisation since April 2024, rising from about N55 trillion to over N123.93 trillion, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has disclosed.

Agama also said the market’s contribution to the nation’s Gross Domestic Product (GDP) has increased significantly from 13 per cent to 33 per cent within the same period, underscoring the sector’s expanding role in economic development.

He spoke in Lagos during his inaugural address to members of the Capital Market Working Group on Market Liquidity at the Commission’s office.

The SEC boss described the growth figures as evidence of strong investor confidence and the resilience of the Nigerian capital market under the current administration, but stressed that market size alone was not enough without corresponding depth and liquidity.

“Since this administration came into being in April 2024, we have seen market capitalisation grow from about N55 trillion to over N123.93 trillion. Our contribution to GDP has moved from 13 per cent to 33 per cent. These are impressive figures, but they tell only part of the story,” he said.

According to him, liquidity remains critical to sustaining the growth momentum, noting 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. But for that barometer to be accurate, the market must be more than just large—it must be liquid,” he said.

Agama identified key structural challenges, including high transaction impact costs for institutional investors and the concentration of trading activities in a limited number of highly capitalised stocks, which he said leaves the broader market relatively shallow.

He warned that without sufficient liquidity; investors may be reluctant to enter the market if they are uncertain about their ability to exit positions without significant price distortions.