Chairman of the Nigerian Exchange Group (NGX), Umaru Kwairanga, has highlighted the essential role of the capital market in funding Nigeria’s long-term infrastructure needs, describing it as a strategic pillar of national development.
Speaking during his keynote address at the ‘For the Love of Our Country (FLOC) 2025’ symposium held at Bayero University Kano, he said Nigeria cannot achieve sustained economic growth or industrialisation without a capital market capable of supporting large-scale infrastructure financing.
He explained that the current gap between Nigeria’s market capitalisation and its GDP, which is still below 20 per cent, underscored the underutilisation of the market in driving projects.
In contrast, he pointed to South Africa’s Johannesburg Stock Exchange, which has outstripped its national GDP, as an example of what is possible when a market is fully harnessed.
Kwairanga disclosed that the NGX Group, in collaboration with the Securities and Exchange Commission (SEC), has been working on a range of initiatives aimed at building investor confidence and streamlining processes.
These include the dematerialisation of physical share certificates, faster transaction settlement times, and improved dividend payment mechanisms all designed to enhance market transparency and efficiency.
He emphasised the importance of upcoming major listings in the oil and gas sector, including the partial divestment of the Nigerian National Petroleum Corporation Limited and the anticipated listing of Dangote Petrochemicals, as catalysts that could significantly scale market capitalisation and investors’ participation.
He also cited the recent launch of NGX Invest as a critical step toward democratising investment opportunities and expanding participation among younger Nigerians.
Through NGX Invest, primary market access and financial education are being extended to students, youths and NYSC members, laying a foundation for future growth in retail investment, he said.
He pointed out that institutional investors remain a cornerstone of the market’s expansion, adding that active engagements are ongoing with key players such as pension fund administrators and mutual funds to deepen their involvement and broaden the investor base.
He also spoke about developing a more diverse portfolio of market instruments, including exchange-traded funds (ETFs), derivatives and ethical investment products tailored to meet evolving investor preferences and risk profiles.
In a bid to unlock regional opportunities, Kwairanga highlighted efforts to integrate African capital markets through cross-border trading platforms.
These linkages would enable investors in Nigeria to buy and sell equities listed on other African exchanges, and vice versa, fostering economic cooperation and expanding market depth across the continent.
Despite acknowledging economic headwinds, including inflationary pressures, infrastructure deficits, and a challenging global environment, Kwairanga expressed strong optimism about the economy.
He pointed to the recent growth in Nigeria’s equity and bond markets, with the all-share index rising from 48,837 to 111,742 basis points and overall market capitalisation, including bonds, which has surpassed N121 trillion.
“Our trajectory is clear, we are laying the groundwork for a capital market that is broader, deeper, and more sophisticated that will be central to achieving Nigeria’s ambition of a $1 trillion economy by the end of this decade,” he said.
