The Securities and Exchange Commission (SEC) has inaugurated a Capital Market Working Group on Market Liquidity, aiming to attract up to 20 million new investors into Nigeria’s capital market through technology-driven solutions.
Emomotimi Agama, Director-General, who inaugurated the group in Abuja on Friday, said broadening investor participation is critical to improving liquidity, stability and long-term market resilience.
Agama noted that despite significant growth in market capitalisation, active participation remains limited to a small segment of the population.
Nigeria’s market capitalisation has risen from about N55 trillion in April 2024 to over N123.93 trillion, while its contribution to GDP has increased from 13 per cent to 33 per cent. However, he said trading activity remains concentrated in a few highly active stocks, leaving many listed securities thinly traded.
A shallow investor base, he warned, weakens price discovery and increases volatility.
The working group has been tasked with leveraging digital platforms and fintech partnerships to convert passive savers into active investors.
Agama urged members to explore how technology can simplify onboarding and expand access to capital market products. He cited initiatives such as the dematerialisation of share certificates and collaboration with fintech firms as steps toward easing entry barriers.
He also highlighted the newly enacted Investments and Securities Act (ISA) 2025, which brings digital assets under SEC oversight, as an opportunity to channel speculative activity into regulated investment products.
“The lines between traditional finance and digital finance are blurring,” Agama said, stressing the need to redirect funds from unregulated activities into productive investments on regulated exchanges.
According to the SEC, deeper participation will:
- Enhance liquidity across listed securities
- Improve price discovery
- Reduce volatility
- Strengthen investor confidence
The liquidity task force comprises representatives from exchanges, custodians, fund managers, dealing members and other market operators.
The push comes amid strong equity market performance. The Nigerian equities market gained 6.27 per cent in January 2026, with over 15 billion shares traded.
The All-Share Index climbed from 155,612.9 to 165,370.4 points, breaking the 160,000 mark for the first time. In February, the rally continued, with the index surpassing 190,000 points on February 17.
The SEC believes building a broader and more inclusive investor base is key to transforming Nigeria’s capital market into a stronger engine for long-term economic growth.
