Tech-driven task force launched to widen participation as market cap tops N123 trillion…
The Securities and Exchange Commission (SEC) has inaugurated a Capital Market Working Group on Market Liquidity with an ambitious mandate: attract up to 20 million new investors into Nigeria’s capital market through technology-powered solutions.
Director-General of the Commission, Emomotimi Agama, unveiled the initiative in Abuja on Friday, stressing that expanding retail participation is critical to strengthening liquidity, improving price discovery and building long-term market resilience.
Despite rapid growth in market capitalisation, Agama noted that active participation remains confined to a relatively small segment of the population, a structural weakness that limits the market’s ability to efficiently allocate capital.
“A shallow investor base concentrates trading among a few institutional players and a narrow band of retail investors,” he said, warning that such concentration undermines stability and deep liquidity.
Technology at the Core
Agama charged the newly constituted Working Group to leverage digital platforms and fintech partnerships to convert millions of passive savers into active investors.
“I want you to explore how technology can onboard the next 20 million investors, turning passive savers into active market participants,” he said.
He cited the ongoing dematerialisation of share certificates and closer collaboration with financial technology firms as foundational steps toward simplifying access to capital market products.
The SEC chief also pointed to the recently enacted Investments and Securities Act 2025, which formally brings digital assets under regulatory oversight. According to him, the law creates an opportunity to redirect speculative capital from informal or unregulated channels into productive investments listed on regulated exchanges.
“We must accept the reality that the lines between traditional finance and digital finance are blurring,” Agama stated. “We must determine how to channel speculative energy into liquid, productive investments within regulated markets.”
Headline Growth, Structural Gaps
Nigeria’s capital market has posted impressive headline gains. Market capitalisation has surged from about N55 trillion in April 2024 to over N123.93 trillion, while the market’s contribution to GDP has expanded from 13 per cent to 33 per cent.
Yet, beneath those figures lie structural imbalances.
Agama observed that trading activity remains heavily concentrated in a handful of highly active stocks, leaving a large portion of listed securities thinly traded. This uneven liquidity makes it difficult for investors to enter or exit positions without moving prices significantly.
Broader participation, he argued, would enhance price discovery, reduce volatility and strengthen overall investor confidence.
Market Momentum Builds
Recent performance suggests rising appetite for equities. The Nigerian market closed January 2026 up 6.27 per cent, with more than 15 billion shares exchanged during the month.
Tracked by the Nigerian Exchange All-Share Index, the market climbed from 155,612.9 points to 165,370.4 points, breaking above the 160,000 threshold for the first time.
The rally has extended into February, with the benchmark index crossing the 190,000 mark on February 17, 2026, another historic milestone.
A Development Imperative
Agama described the capital market as a strategic engine for national development, capable of mobilising long-term capital to finance infrastructure, industry and job creation but only if liquidity challenges are addressed.
He urged members of the Working Group drawn from exchanges, custodians, fund managers, dealing members and other market operators to deliver practical, implementable recommendations that will make investment opportunities accessible to ordinary Nigerians.
According to him, building a broad and inclusive investor base is not merely a market objective, but a national economic priority.
If the initiative succeeds, Nigeria’s capital market could transition from a largely institutional arena into a mass-participation platform unlocking deeper pools of domestic capital and reshaping the country’s investment landscape.
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