Nigeria’s stock market capitalisation has grown from N2 trillion 20 years ago to N160 trillion, about 60 per cent of Gross Domestic Product (GDP) but low liquidity, high concentration and limited diversification remain major constraints to sustainable growth, the chief executive officer of Financial Derivatives Company Limited, Bismarck Rewane has warned.
Speaking at the 15th Annual Conference of the Institute of Capital Market Registrars (ICMR) themed , “Beyond Recapitalisation: Building Resilient Institutions And Sustainable Capital Market,” held yesterday in Lagos, Rewane said a larger market is not automatically a deeper market.
He noted that “Nigerian Exchange Group market capitalisation reached N163 trillion by September 2026, up from N99.4 trillion at the start of the year, with the All-Share Index rising about 64 per cent year-to-date.
“Despite the rally, equity market capitalisation is still roughly 33-37 per cent of Gross Domestic Product, below the 60 per cent target in Nigeria’s capital market master plan.”
“The top-10 companies account for about 72 per cent of total market value. A small number of large companies account for most of the market value, so we have to diversify,” Rewane said.
He added that daily turnover of N70 billion to N80 billion remains limited compared to market capitalisation, and Nigeria’s turnover ratio is low compared with South Africa and Egypt, stating that “low liquidity is a major constraint.”
Rewane also pointed to fewer than five new listings in 2026 and 2025 capital raised of N6.49 trillion concentrated in a few large issuances.
Pension assets, he said, are still only about six to seven per cent of Gross Domestic Product.
He said the real test is whether capital finances productive capacity, pointing to strong demand for Sukuk and green bonds as proof that Nigeria can mobilise long-term capital.
“The Federal Government of Nigeria Series VII Sukuk targeted N300 billion but attracted N2.205 trillion in subscriptions, while the 2025 Federal Government of Nigeria green bond targeted N50 billion and drew N91.42 billion.
“There is strong demand for Sukuk and green bonds. Broad participation, linking values and norms of society to the market, matters,” Rewane said.
Also speaking, president of the Institute of Capital Market Registrars, Mrs. Catherine Nwosu, said recapitalisation is only the beginning and what the market does with the capital will determine whether it builds resilient institutions or merely bigger ones.
“For us as registrars, this theme is personal. We are the custodians of the shareholder register. When 2.5 million investors become eight million, it is our offices that must ensure their records are accurate, their dividends are paid on time, and their rights are protected,” Nwosu said.
She pointed out that resilience starts with data integrity, transparency and technology, stating that the market cannot be built on manual processes, delayed reconciliations and unclaimed dividends.
“We must embrace digital transformation, electronic dividends, electronic mandates, seamless onboarding, and real-time verification,” she said.
Nwosu added that trust is earned when an investor in Kano, Onitsha, Ibadan or in the diaspora knows his shares are safe and his voice counts at Annual General Meetings.
She pledged that registrars will uphold the highest standards of ethics and service, invest in people, upgrade systems, and support the deepening of the market.
Rewane emphasized that Nigeria’s market must evolve from one driven mainly by share-price gains into a genuine engine for capital formation.
“It is not sufficient to measure capital market development by size alone. Nigeria must also strengthen liquidity, broaden listings, diversify, increase participation, and keep an eye on untoward activity,” he said.