The Chairman of Nigerian Exchange (NGX) Group Plc, Dr. Umaru Kwairanga, has set an ambitious agenda for the Nigerian capital market in 2026, emphasizing stronger competitiveness, deeper liquidity, and enhanced international alignment as core priorities.
In a detailed review titled “2025 Capital Market Review and a Forward-Looking Agenda for 2026,” he outlined strategic pillars expected to guide investors, regulators and operators into the new year.
He highlighted total market capitalization at N149.88 trillion comprising equities, bonds and Exchange Traded Products (ETPs) as of December 24.
Kwairanga identified regulatory and policy reforms, the ongoing recapitalisation realignment in the financial sector, and increased participation across investor classes as three key drivers of market’s historic performance.
The NGX Group Chairman is saying that sustaining the gains of 2025 will require long-term investing discipline, policy harmonisation, transparent governance practices and technology-led market access.
He stressed the importance of coherent tax and FX policies, improved regulatory clarity, deeper investor education, and enhanced infrastructure to strengthen Nigeria’s capital market resilience and global attractiveness.
Kwairanga’s 2026 agenda is anchored on three interlocking fronts — investors and issuers, regulators, and market operators — each expected to drive reforms that support stability and depth.
1. For Investors and Issuers
The NGX Chairman urged market participants to adopt long-horizon, diversified investment strategies capable of strengthening capital stability. He highlighted the growing importance of technology in investor engagement and called for stronger adherence to environmental, social and governance (ESG) principles, which he said are now central to attracting global capital.
2. For Regulators (SEC, CBN and Policymakers)
He emphasised the urgency of harmonising tax, FX and cross-border repatriation rules to minimise volatility, particularly for foreign investors. Clearer policies on capital gains tax, settlement efficiency, disclosure standards and product innovation — including derivatives and exchange-traded products — will be vital, he said, in sustaining investor confidence.
3. For Market Operators (NGX and Intermediaries)
Kwairanga called for accelerated investment in market infrastructure, technology platforms, cross-border connectivity and continuous investor education. Market integrity, transparency and strong enforcement mechanisms, he added, remain fundamental to deepening local and international trust.
Kwairanga noted that Nigeria’s capital market delivered a commendable performance in 2025 despite macroeconomic headwinds, FX uncertainties and global volatility. With strong reforms, robust corporate actions and expanded investor participation, the market ended the year at a historic high.
Total market capitalization soared to about N149.88 trillion as of December 24, 2025. Equities accounted for N98.89 trillion (about 65.31% of total market cap), driven by strong earnings, sectoral resilience across banking, consumer goods, industrials and telecoms, and sustained investor appetite for fundamentally strong companies.
The NGX All-Share Index surged by about 49.17% by 24 December 2025 to close at 153,539.8 points, a performance that places the NGX among Africa’s top-performing exchanges.
The NGX All-Share Index surged by about 49.17% by 24 December 2025 to close at 153,539.8 points, a performance that places the NGX among Africa’s top-performing exchanges.
Domestic investors dominated activity at roughly 79–80% of transaction value, while foreign investors accounted for 20–21%, reflecting rising offshore interest albeit constrained by FX dynamics and policy ambiguity.
The primary market also strengthened as the exchange recorded a wave of new listings and equity issuances with total capital raised rising to an estimated N6.34 trillion — boosted significantly by bank recapitalization programmes.
Foreign portfolio investment improved year-on-year, with several periods showing double-digit increases in offshore flows. Yet, participation remains low relative to domestic activity, averaging around 20–21% in recent months. Persistent FX instability and uncertainties around capital gains tax continue to weigh on foreign investor decisions.
Kwairanga, however, noted that the uptick in total foreign inflows signals a renewed global interest in Nigerian assets, but sustained progress will depend on predictable policies and a more stable macroeconomic environment.
According to him, the key drivers behind the 2025 upswing include:
Nigeria’s capital market is closing 2025 on strong gains, with total market capitalisation surging to N149.88 trillion as of December 24—effectively pushing the market to the brink of the N150 trillion milestone for the first time in its history.
The expansion reflects broad-based growth across equities, bonds, and Exchange Traded Products (ETPs), underpinned by sustained reforms and rising investor activity.
Data from the Nigerian Exchange (NGX) shows that equities contributed N97.89 trillion, accounting for 65.31% of total market value. The bond market added N51.55 trillion, while ETPs, though still a relatively small segment, recorded N43.20 billion in value.
The equities market, in particular, maintained a bullish run throughout the year. The NGX All-Share Index (ASI) posted a 49.17% gain to close at 153,539.8 points as of December 24, ranking the NGX among Africa’s best-performing exchanges in 2025. Turnover also more than doubled year-on-year, driven largely by domestic investors seeking higher returns amid tight monetary conditions.
The NGX Group Chairman believes the gains made in 2025 provide a strong foundation for even greater progress in 2026. Delivering on this potential will require tighter policy alignment, infrastructure upgrades, sustained investor education and an unwavering commitment to market integrity. With coordinated effort among regulators, investors and operators, Nigeria’s capital market is poised to become deeper, more inclusive and globally competitive in the years ahead.