Lagos: Chairman of the Nigerian Exchange Group, Dr. Umaru Kwairanga, has highlighted the exponential growth experienced by the Nigerian Capital Market since his tenure began in 2022.
According to News Agency of Nigeria, he emphasized the group’s dedication to aligning with President Bola Tinubu’s vision of escalating the nation’s GDP to one trillion dollars by 2030.
In a keynote address at the ‘For the Love of Our Country (FLOC) 2025’ symposium, held at Bayero University Kano, Kwairanga discussed the past, present, and future of Nigeria’s economy. He noted the significant rise in the All Share Index (ASI) from 48,837 to 111,742 basis points and the increase in market capitalisation from N26.375 trillion to N70.463 trillion by May 2025. The bond markets, now included in the total market capitalisation, have reached over N121 trillion.
Kwairanga articulated that the indices of both equity and bond markets have more than doubled in just over two years. Despite this growth, he stressed a more ambitious goal of achieving a $1 trillion economy through the capital market’s central role. Highlighting the strategic importance of a robust capital market, he pointed out its potential to finance long-term infrastructure, encourage formal business practices, and reflect Nigeria’s true economic potential.
He raised concerns over Nigeria’s market capitalisation being less than 20 per cent of the nation’s GDP, in contrast to South Africa’s Johannesburg Stock Exchange surpassing its GDP. To tackle this, several initiatives by NGX Group and regulators like the Securities and Exchange Commission (SEC) aim to enhance market transparency and efficiency. These include dematerialisation of share certificates, resolving unpaid dividend backlogs, and reducing clearing time for secondary market transactions to T+2.
Kwairanga also mentioned plans for major listings in the oil and gas sector, such as the sale of a stake in NNPC Ltd. and the anticipated listing of Dangote Petrochemicals, which could substantially increase market capitalisation. He cited digital innovation as pivotal for market engagement, referencing the launch of NGX Invest, a platform for primary market offers and financial literacy campaigns targeting youths and members of the National Youth Service Corps (NYSC).
Ongoing engagements with institutional investors, including pension fund administrators and mutual funds, were also revealed. Moreover, he hinted at developing sophisticated products like exchange-traded funds, derivatives, and ethical investment instruments. He advocated for integrating African capital markets through cross-border linkages, allowing Nigerian investors to trade shares listed on exchanges in countries like Ghana.
Despite challenges like declining disposable income, infrastructural deficits, and global economic headwinds, Kwairanga remains optimistic. He expressed confidence that Nigeria will achieve a broader, deeper, and more sophisticated capital market by the end of the decade.