Nigeria’s capital market is positioning itself for a transformative year ahead, with leadership outlining a comprehensive blueprint aimed at deepening liquidity, strengthening international competitiveness, and sustaining the momentum from 2025’s remarkable performance.
Dr. Umaru Kwairanga, Chairman of Nigerian Exchange (NGX) Group Plc, has articulated a forward-looking strategy centered on three critical stakeholder groups—investors and issuers, regulators, and market operators—each tasked with implementing reforms designed to enhance market stability and depth.
The Nigerian capital market closed 2025 on a high note, with total market capitalization reaching approximately N149.88 trillion as of December 24. Equities comprised the lion’s share at N98.89 trillion, representing roughly 65% of the total market capitalization, while bonds and exchange-traded products made up the remainder.
The NGX All-Share Index demonstrated exceptional strength, surging nearly 49.17% to close at 153,539.8 points by late December, positioning the exchange among Africa’s best-performing bourses for the year. This growth occurred despite considerable macroeconomic headwinds, including foreign exchange uncertainties and global market volatility.
Capital raising activities flourished throughout the year, with the primary market recording approximately N6.34 trillion in total capital raised—a figure significantly bolstered by the ongoing bank recapitalization programs mandated by regulatory reforms in the financial sector.
Kwairanga identified several key catalysts behind the market’s historic performance. Regulatory reforms targeting foreign exchange unification and transparency provided a more stable operating environment. The banking sector’s recapitalization drive injected fresh capital and renewed confidence, while robust corporate actions, including healthy dividend payouts, attracted both retail and institutional investors.
Improved governance frameworks and strong sectoral performance across banking, consumer goods, industrials, and telecommunications further underpinned the rally. The expansion of digital trading channels democratized market access, contributing to increased domestic participation.
While domestic investors dominated trading activity, accounting for approximately 79-80% of transaction value, foreign participation remained modest at 20-21%. However, Kwairanga noted signs of recovery, with foreign portfolio investment showing year-on-year improvement and several periods registering double-digit increases in offshore flows.
Despite these gains, persistent foreign exchange instability and lingering uncertainties surrounding capital gains tax policies continue to constrain international investor appetite. The chairman emphasized that sustained foreign participation will hinge on predictable policy frameworks and macroeconomic stability.
Kwairanga urged market participants to embrace long-horizon, diversified investment strategies capable of providing capital stability. He highlighted the growing significance of technology in investor engagement and stressed the importance of adhering to environmental, social, and governance (ESG) principles, which have become essential for attracting global capital.
The chairman called on the Securities and Exchange Commission, the Central Bank of Nigeria, and policymakers to harmonize tax, foreign exchange, and cross-border repatriation regulations to reduce volatility, particularly for foreign investors. He emphasized the need for clearer policies on capital gains tax, enhanced settlement efficiency, improved disclosure standards, and support for product innovation—including derivatives and exchange-traded products—to maintain investor confidence.
NGX and intermediaries were urged to accelerate investments in market infrastructure, technology platforms, and cross-border connectivity. Kwairanga stressed that continuous investor education, market integrity, transparency, and robust enforcement mechanisms remain fundamental to building both local and international trust.
The NGX chairman emphasized that preserving 2025’s gains will require disciplined long-term investing, policy harmonization, transparent governance practices, and technology-enabled market access. Coherent tax and foreign exchange policies, improved regulatory clarity, deeper investor education, and enhanced infrastructure will be critical to strengthening Nigeria’s capital market resilience and enhancing its global attractiveness.
As Nigeria’s capital market enters 2026 from a position of strength, the success of Kwairanga’s ambitious agenda will depend on coordinated action across all stakeholder groups and the government’s ability to deliver the policy stability and regulatory clarity that international investors demand.
WHAT YOU SHOULD KNOW
Nigeria’s capital market achieved a historic 49% rally in 2025, with total capitalization hitting N149.88 trillion and N6.34 trillion raised through new issues—driven largely by banking sector recapitalization. However, sustaining this momentum in 2026 hinges on one critical challenge: policy stability.
While domestic investors dominate at 80% of trading activity, foreign participation remains stuck at just 20% due to persistent foreign exchange volatility and capital gains tax uncertainty.
NGX Chairman Dr. Umaru Kwairanga’s 2026 agenda is clear—without harmonized tax and FX policies, clearer regulatory frameworks, and improved infrastructure, Nigeria risks losing the confidence needed to transform short-term gains into long-term market depth and international competitiveness.
