Nigeria's Capital Market Grows 33% Contribution to GDP

The Nigerian capital market recorded a remarkable growth of N68.83 trillion, leading to a contribution of 33% to the nation's Gross Domestic Product (GDP), marking a 13% increase. Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), disclosed these figures during an address in Lagos at the inauguration of a capital market work group.

He noted that while the market size is impressive, it is essential to enhance liquidity and depth to sustain growth. The market capitalization rose to N123.93 trillion in April 2024.

Agama identified structural challenges, such as high transaction costs and limited trading activity among institutional investors, which hinder broader market participation. The SEC aims to onboard 20 million new investors through digital platforms and improve liquidity through product innovation.

Mr. Temi Popoola, CEO of NGX, emphasized the need for bold recommendations to strengthen liquidity and support the federal government's goal of building a trillion-dollar economy.