Nigerian Exchange Projects N230trn Market Capitalisation Value By Year-End

The Nigerian Exchange Group (NGX Group) Plc has projected that the total market value of companies listed on the Nigerian Exchange will hit N230 trillion by the end of 2026, underscoring the growing importance of the capital market as a key driver of Nigeria’s economic transformation.

The group managing director and chief executive officer of NGX Group, Temi Popoola, disclosed this while highlighting the significant expansion of the market since the administration of President Bola Tinubu assumed office in May 2023.

According to Popoola, the total value of companies listed on the Nigerian market was just about of N30 trillion when the current administration took office. That figure has since risen to about N160 trillion.

“Today, NGX capitalisation is N160 trillion. And by the end of this year, with the significant activity that we expect in our market, we expect that figure to be N230 trillion.”

He stated that the projected increase reflects strong performance in the equities market, increased investor participation and growing activity in the primary market.

Popoola said the strong performance reflects growing confidence in the direction of the economy, noting that the growth in market capitalisation, domestic participation and primary-market activity demonstrates both investor appetite and the market’s increasing capacity to support growth.

However, he stressed that the next challenge is to convert market gains into sustainable capital formation, explaining that “a trillion-dollar economy requires deep pools of long-term domestic and international capital. The capital market must therefore become one of the principal mechanisms through which Nigeria finances its leading companies, infrastructure and productive sectors.”

Popoola said added that the opportunity before Nigeria is to convert market growth into a sustained cycle of capital formation, enterprise expansion, infrastructure development and broad-based wealth creation.

To further deepen the market’s contribution to national development, NGX Group proposed four strategic priorities: privatisation and listing of commercially viable government assets, domestic or dual listing of leading Nigerian companies, greater policy clarity on capital gains tax treatment of listed securities and increased utilisation of capital market instruments to finance infrastructure and industrial development

Popoola said the measures are expected to expand the number and value of companies listed on the exchange, improve market liquidity and attract additional domestic and international capital.

He noted that “listing government-owned assets could broaden public ownership while helping government unlock value from productive assets. Encouraging major Nigerian companies to list locally or pursue dual listings would also deepen the equities market and increase opportunities for Nigerian investors.”

The NGX CEO argued that developing a deeper capital market is critical to Nigeria’s ambition of achieving a larger and more diversified economy.

He said the market can provide businesses and governments with access to long-term funding required to finance expansion and infrastructure, while also giving investors opportunities to participate in the country’s growth.