34 Firms Raise N1.99trn Amid Expansion, Job Creation Target

Thirty-four companies raised N1.99 trillion from the Nigerian capital market in the first nine months of 2026, as businesses sought fresh funding to support expansion, strengthen operational capacity and position themselves for growth amid persistent economic pressures.

The capital-raising surge underscores the growing importance of the Nigerian Exchange Limited (NGX) as a source of long-term financing for businesses seeking alternatives to expensive bank loans and short-term funding options amid persistent economic pressures.

Beyond strengthening corporate balance sheets, analysts said the funds could support investments in factories, machinery, technology, distribution networks and other infrastructure required to increase production and improve business efficiency.

For the wider economy, they noted that the investments could translate into additional employment opportunities, improved local production, stronger supply chains and increased economic activity, particularly if companies direct a significant proportion of the funds towards productive assets.

Data on corporate listings on the NGX shows total corporate capital raising hit about N2.76 trillion by September, covering equities, corporate bonds, commercial papers and supplementary listings. Of that, N1.99 trillion was raised by 34 financial and non-financial companies seeking expansion, working capital and balance sheet strengthening.

The surge comes at a time the Nigerian equities market is sustaining a historic rally. Market capitalisation has risen by N63.73 trillion in nine months to N163.10 trillion, while the All-Share Index has gained 61.43 per cent year-to-date to 251,211.67 points, making Nigeria Africa’s best performing market in dollar terms with a 75.5 per cent return.

Among the 34 companies, Dangote Sugar Refinery raised N485.875 billion through a rights issue, Abbey Bank raised N64.547 billion, Sterling Financial Holding Company raised N106.978 billion, Guinea Insurance listed 12.673 billion new shares, Regency Alliance Insurance raised N6.051 billion, Sunu Assurance raised N9.339 billion, Sovereign Trust Insurance raised N5.022 billion, Neimeth International Pharmaceuticals raised N2.442 billion, Critical Minerals Financing Corporation raised N1.807 billion and Eunisell Interlinked raised N200 million, among others.

GMD/CEO of NGX Group, Temi Popoola, said Nigeria’s growth ambitions require capital at a scale that cannot come from a single source, noting that the market’s role is to connect long-term funding with productive sectors.

The chief executive officer of Sofunix Investment and Communications, Sola Oni, said the N1.99 trillion reflects both investor appetite and issuer desperation.

He said regulatory-driven recapitalisation and issuers’ funding needs are major drivers, while investor appetite indicates confidence in the market’s capacity to mobilise capital.

According to Oni, banking and insurance have been major drivers of the raises, particularly because of recapitalisation requirements, which highlights the financial sector’s funding needs.

He noted that rights issues and public offers have been important channels alongside private placements, adding that retail participation varies by offer, with affordability, financial literacy and investor confidence determining how broadly individual investors benefit.

Oni said institutional investors are likely providing a substantial share of the funding because of their financial capacity, while retail participation broadens ownership.

He said funds raised are going into both expansion and balance-sheet repair, as some issuers need capital to meet regulatory requirements while others seek to expand capacity.

He stressed that the capital market provides a sustainable alternative to expensive bank loans, as equity offers long-term capital without mandatory interest, while corporate bonds offer longer tenure.

National Chairman of New Dimension Shareholders Association, Mr. Patrick Ajudua, however cautioned that fresh capital raising does not automatically translate to higher dividends or immediate job creation.

“You need to know that investment has risk element. Not all companies that raise fresh capital deliver better dividend,” Ajudua said.

He noted that in fairness, a large number of companies have delivered dividends, particularly since the coming of this administration which has stabilised the economy, especially the foreign exchange market.

Ajudua said the waiting period for improved returns after capital injection varies by company and sector, explaining that “in the insurance sector, more than 70 per cent of listed companies under the sector are not paying dividend post recapitalization. It may be a deliberate policy to grow the capital structure in order to pay dividend subsequently.”

On impact, he said capital raising may not necessarily create more jobs in the short term, but will lead to improved productivity, returns and capital appreciation.

He maintained that shareholders have a better future investing in the capital market than keeping funds in banks.

The managing director of Globalview Capital Limited, Mr. Aruna Kebira, said the recent surge to N1.999 trillion reflects rising investor confidence in the Nigerian Exchange, not apathy, and that confidence is key to capacity building.

Speaking on market participation, Kebira said innovations, improved transparency and the T+1 settlement cycle, where investors get proceeds a day after selling, have deepened retail participation and awareness.

He cited the Dangote Refinery offer where platforms like OPay and banks actively mobilised investors as creating serious market awareness.

He said the market has evolved significantly since 2011 and is now aligning with global standards, moving away from the speculative ‘kalokalo’ approach seen in 2004.

He cautioned that investors should treat equities as long-term investments, noting that sharp short-term gains often reflect market disequilibrium.

On funding options, Kebira said equity remains the cheapest way to run and expand a manufacturing organisation, as interest on bank loans must be paid irrespective of profitability while equity allows plough-back of profits into the company to do more for shareholders.

He added that the funds have a multiplier effect on capacity expansion, technology adoption and job creation.

He said boards will be under pressure to deliver value, increase production, pay good dividends and put square pegs in square holes because reputation is at stake, adding that the recapitalisation in insurance was necessary to restore ability to pay claims and rebuild public confidence in the sector.

Oni added that sustaining the pace of capital raising through Q4 will depend on liquidity, interest rates, inflation and credible offers coming to the market.