Concerns as 10 stocks dominate 73% of NGX’s N165tr market cap

Ten companies account for approximately 73.32 per cent of the Nigerian Exchange Limited’s (NGX) total market capitalisation of N165.08 trillion, raising concerns about the concentration of market value in a relatively small number of listed stocks.

The companies, with a combined market capitalisation of N121.039 trillion, are Dangote Cement, Airtel Africa, MTN Nigeria Communications, BUA Foods, BUA Cement, Seplat Energy, HBM Nigeria, Aradel Holdings, First HoldCo and Zenith Bank.

Data attributed to the NGX as at November 2, 2026, showed that Dangote Cement led the market with a capitalisation of N25.1 trillion, constituting 15.2 per cent, representing the largest share of the exchange’s total equity value.

Airtel Africa followed with N23.7 trillion, accounting for 14.3 per cent, while MTN Nigeria Communications ranked third with N17.8 trillion, accounting for 10.8 per cent.

BUA Foods occupied the fourth position with N13.7 trillion, or 8.29 per cent, followed by BUA Cement at N10.1 trillion, constituting 6.11 per cent and Seplat Energy with N9.6 trillion, constituting 5.81 per cent.

The remaining four companies were HBM Nigeria with N5.618 trillion, accounting for 3.42 per cent. Aradel Holdings with N5.612 trillion, accounting for 3.41 per cent. First HoldCo with N5.38 trillion, accounting for 3.26 per cent, and Zenith Bank with N4.76 trillion, representing 2.89 per cent.

This means that the remaining 146 equities out of the 156 companies listed on the Nigerian Exchange Limited (NGX) account for approximately N47 trillion, representing just 26. 68 per cent of the total market capitalisation. The figures highlighted the concentration of market value among a relatively small number of listed companies, with the bulk of the Exchange’s capitalisation dominated by the leading stocks.

The development highlighted the influence of a handful of large-capitalisation companies on the overall direction of the Nigerian equities market. Significant price movements in these stocks could have considerable effects on the exchange’s market value and benchmark performance.

It also raised questions about market depth, the distribution of investment opportunities and the ability of smaller listed companies to attract a greater share of domestic and foreign portfolio investments.

President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, said the concentration of market value in a few stocks could limit the spread of wealth creation across the equities market, leaving companies outside the leading group with less opportunity to benefit from strong share price appreciation.

He said companies that do not fall within the leading categories might continue to lag behind unless they improve their financial performance, strengthen key financial ratios and deliver better returns to shareholders.

According to him, listed companies must demonstrate stronger earnings growth and adopt attractive reward policies for investors to improve their market valuation and compete favourably with the dominant stocks.

President of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude urged other listed firms to focus on building stronger businesses capable of delivering better returns to shareholders and attracting investors.

Igbrude maintained that the responsibility lies with other listed companies to position themselves for growth and compete effectively, adding that an increase in the market value of more companies would further deepen the market and broaden investment opportunities.

He added that the strong market value of these leading companies should serve as a motivation for other firms to strengthen their operations, improve profitability and expand their businesses to increase their contributions to the overall market capitalisation.

Dangote Cement Plc, one of the leading companies driving the growth in the Nigerian equities market, reported a pre-tax profit of N1.47 trillion for the nine months ended September 30, 2026, representing a 41.5 per cent increase from N1.04 trillion recorded in the corresponding period of 2025.

The cement manufacturer had earlier reported a pre-tax profit of N981.39 billion for the six months ended June 30, 2026, up by 34.43 per cent from N730.03 billion recorded in the corresponding period of the previous year.

Similarly, MTN Nigeria Communications Plc also recorded a strong earnings performance, with its pre-tax profit rising by 59.4 per cent to N1.80 trillion for the nine months ended September 30, 2026, from N1.13 trillion achieved in the corresponding period of 2025. The growth was supported by stronger data revenue and subscriber growth.