The Nigerian capital market has demonstrated significant strength and resilience, facilitating the raising of approximately N2.4 trillion by banks since the commencement of the ongoing recapitalisation exercise in 2024, according to the Securities and Exchange Commission (SEC). This surge highlights the market’s capacity to drive substantial economic growth, a testament to the sector’s robust nature.
Dr. Emomotimi Agama, Director-General of the SEC, speaking in Abuja, emphasized the transformative impact of the newly enacted Investments and Securities Act 2025. “The capital market is strong enough to provide the much-needed funding for various sectors of the economy,” he stated. “When you look at what the capital market has already done with the bank recapitalisation, which is still ongoing, you can agree with me that our market is strong.”
Agama highlighted the market’s recent performance, noting, “Today, the Nigerian capital market has been able to facilitate the raising of capital by banks to the tune of N2.4tn and still counting. This has never happened in the history of this country.” He also pointed to the Ministry of Finance Incorporated’s recent N250 billion capital raise for housing facilitation as further evidence of the market’s resilience. According to the SEC, Market capitalization has moved to over N65 trillion, reinforcing the markets positive trajectory.
The Investments and Securities Act 2025 is seen as a pivotal development, positioning the SEC to maintain its signatory A status with the International Organisation of Securities Commissions. This recognition allows international jurisdictions to benchmark against the Nigerian SEC and capital market, potentially attracting further investments.
“This is significant because it allows other countries to benchmark the Nigerian SEC and capital market with other jurisdictions, a move which he said will drive investments and investors into the Nigerian capital market and also expand the capital market reach in Nigeria,” Agama explained.
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The new legislation also addresses the regulation of online forex and digital assets, areas of significant youth participation. “This is huge because, in the Nigerian population, the youths that are involved in this space are many, so providing clarity and providing legal framework and background to this is very essential for our growth,” Agama noted.
Furthermore, the Act introduces the Legal Entity Identifier for derivatives transactions, regulates the commodities ecosystem, and removes restrictions on state and local governments’ ability to raise capital. This latter provision allows sub-national entities to access long-term funding for development projects.
The Senate Committee on Capital Market, led by Senator Osita Izunaso, echoed this sentiment, urging states and local governments to leverage the capital market. “With the new law, states and local governments can approach the capital market for long-term funding. Instead of relying on federation accounts and commercial borrowing, states and the 774 LGAs can now go to the capital market for long-term funding for the projects,” Izunaso stated.
The Senate Committee Chairman also addressed market integrity, stating “I would also like to make it clear that the days of Ponzi insider trading and market manipulations are over in Nigeria.”
The passage of the Investments and Securities Act 2025, according to Senator Izunaso, is a critical step towards Nigeria achieving a $1 trillion economy. “Today, Mr. President is talking about a $1 tn economy. By signing this Act into law, it means that Nigeria is set for that $1tn economy. So, today, the capital market has been reset for that purpose.”
This surge in capital market activity, coupled with the new regulatory framework, signals a significant period of growth and stability for Nigeria’s financial sector, with potential positive implications for the broader economy.
