Zenith Bank Market Capitalisation Hits N5trn

…As experts demand hike in NGX free float requirement

Financial experts are urging the Nigerian Exchange Limited (NGX) and regulators to hike the minimum free float requirement for listed companies to 50 per cent of issued share capital, aiming to deepen liquidity and enhance market efficiency amid ongoing reforms.

This was among the key recommendations on the latest Market Watch podcast by analysts Idika Aja and Muktar Mohammed, which gained urgency as NGX extends plans to extend trading hours to 9:00 a.m.–4:00 p.m. from April 27, 2026.

This comes as Zenith Bank Plc surged past the N5 trillion market capitalisation mark to become Nigeria’s most valuable banking stock, with shares climbing from N61.80 in December 2025 to N127.20 by April 20, 2026

The experts warned that the current 20 per cent free float minimum, which is lower for some boards, remained a key liquidity bottleneck.

Dismissing overvaluation concerns, the analysts cited undervalued stocks on P/E and PEG metrics, strong oil and gas fundamentals, and Zenith’s robust 2025 results—including N4.19 trillion gross earnings and 11 per deposit growth—as signs of a sustainable rally, predicting a brief correction ahead.

On the Market Watch podcast, hosted by Frank Fagbo and Oge Obierika,  the analysts noted that the Nigerian Exchange Limited (NGX) generally requires listed companies to maintain a minimum free float of 20 per cent of their issued share capital held by the public, or a free float market value of N20 billion (Main Board) or N40 billion (Premium Board). For the Growth Board, requirements are lower, typically 10-15 per cent

According to market analysts Idika Aja and Muktar Mohammed, while increasing trading hours is beneficial, increasing the volume of shares available for trading would significantly enhance market depth and boost investor participation.

Idika Aja noted that although NGX’s plan to extend trading hours from 9:30 a.m.–2:30 p.m. to 9:00 a.m.–4:00 p.m. aligns with global standards, it may not, on its own, significantly improve liquidity.

Muktar Mohammed dismissed concerns that the market is in bubble territory, stating that the current rally is driven by improved fundamentals rather than speculative excesses.

He added that recent price increases reflect a correction from years of undervaluation, rather than unsustainable growth.

The exchange recently announced plans to extend trading hours to 4:00 p.m. from April 27, 2026.

The move also shifts the market opening time earlier to 9:00 a.m. from 9:30 a.m.

The initiative will align Nigeria’s capital market operations with global best practices.

It is expected to provide investors with a longer window to execute trades.

Despite this, analysts believe that structural issues, such as limited free float, continue to constrain liquidity.

Meanwhile, Zenith Bank Plc became the first banking stock to cross the N5 trillion market capitalisation threshold, making it the first bank in the country to achieve the milestone—cementing its position as the most valuable banking stock on the Nigerian Exchange Group.

The achievement followed a rally in the bank’s share price between December 2025 and March 2026, during which the stock surged from N61.80 to an all-time high of N113.30.

As of March 18, 2026, the stock closed at N110.00, representing a gain of over 77 per cent in just a few months—one of the strongest performances recorded on the NGX in recent times

The rally significantly boosted Zenith Bank’s valuation, rising from N2.54 trillion at the end of December 2025 to about N4.5 trillion by mid-March when the share price hit N113.30, and further climbing to approximately N5.04 trillion as the stock advanced to N122.90 on April 15, 2026. As of the close of market on April 20, 2026, Zenith Bank’s market capitalisation rose to N5.2 trillion with a share price of N127.20.

In one notable session, the stock jumped 7.91% to close at ₦111, marking its biggest single-day gain since February and briefly pushing it ahead of Guaranty Trust Holding Company Plc as Nigeria’s most capitalised bank.

Zenith Bank also joined the elite league of Nigerian banking stocks trading above N100 per share, becoming only the second to do so after GTCO, further underscoring its strong investor appeal.

Market data shows that between mid-December 2025 and mid-March 2026, Zenith Bank ranked among the most actively traded equities on the NGX, recording a total volume of 2.52 billion shares. Its 52-week trading range expanded significantly from N43.00 to N113.30, reflecting heightened investor confidence and sustained demand.

The bullish momentum is underpinned by the bank’s resilient financial performance for the year ended December 31, 2025. Zenith Bank reported gross earnings of N4.19 trillion, a 6% increase from N3.97 trillion in 2024.

Analysts attribute the bank’s strong market performance to growing confidence in its strategic direction under Group Managing Director/CEO, Adaora Umeoji.

Since assuming leadership, Umeoji has prioritised capital strength, digital transformation, international expansion, and shareholder value creation—strategies that have resonated strongly with investors and positioned the bank for sustainable growth.