Nigeria's capital market is experiencing substantial growth, with its contribution to the Gross Domestic Product (GDP) reaching 33%. This surge is attributed to a significant increase in total market capitalization, which has risen to over N123.93 trillion, according to the Securities and Exchange Commission (SEC). This represents a 125% increase from the market capitalization of approximately N55 trillion recorded in April 2024.

SEC Director-General, Dr. Emomotimi Agama, revealed these figures during his address to the Capital Market Working Group on Market Liquidity in Lagos on Sunday, February 22, 2026. He emphasized the market’s growing impact on national economic performance, describing the growth as historic. However, he cautioned that sustaining this momentum requires deeper liquidity and improved trading efficiency to ensure long-term stability and investor confidence.

Dr. Agama noted that these impressive growth figures reflect investor confidence and resilience. Despite the sharp expansion in market value, he acknowledged that structural challenges persist. He stressed that liquidity is crucial for sustaining growth and ensuring the market effectively performs its primary function of capital formation.

To address these concerns, the SEC has inaugurated a multi-stakeholder Working Group comprising exchanges, custodians, fund managers, dealing members, and other market operators. This committee is tasked with developing practical reforms to strengthen liquidity and improve price discovery.

Furthermore, Dr. Agama highlighted that the recently enacted Investments and Securities Act (ISA) 2025 has broadened regulatory oversight to include digital assets. This expansion creates an opportunity to channel speculative activity into regulated and productive investment vehicles.

The SEC’s liquidity reform drive is part of its broader 2026 agenda, which focuses on stimulating long-term capital formation and broadening investor access. The goal is to ensure that recent gains in market capitalization translate into sustainable and inclusive growth, as Nigeria aims to build a trillion-dollar economy. The Commission maintains that the next phase of reform will focus on ensuring the capital market is not only large, but also deep, inclusive, and globally competitive.