SEC Sets N750tn Capital Market Target as Nigeria Pushes for More Listings

Nigeria’s Securities and Exchange Commission (SEC) is targeting a N750 trillion capital market by 2036 under a proposed 10-year development roadmap designed to expand market participation, attract new company listings and strengthen long-term investment financing.

The initiative also seeks to increase the number of listed companies to 250, placing greater emphasis on the capital market’s ability to mobilise funds for businesses, infrastructure and economic development.

The ambitious target signals a push to deepen Nigeria’s financial markets beyond their current concentration in a relatively small number of large companies.

A central challenge will be attracting more businesses to the Nigerian Exchange and other regulated market platforms, particularly companies that have traditionally relied on bank loans, private financing or internally generated funds.

For businesses, access to the capital market offers an alternative means of raising long-term financing through equity issuance and debt instruments.

Unlike conventional bank borrowing, equity financing allows companies to raise capital without fixed repayment obligations, although existing shareholders may experience dilution.

An increase in public listings could also broaden investment opportunities for pension funds, insurance companies, institutional investors and retail participants.

However, achieving the N750 trillion target will require more than rising share prices.

Sustained market expansion will depend on new listings, capital raising, improved market liquidity and stronger investor confidence.

Nigeria’s capital market has recorded substantial valuation changes in recent years, partly reflecting movements in the share prices of major listed companies.

Such gains can increase total market capitalisation without necessarily producing a corresponding expansion in the number of businesses accessing public financing.

The proposed roadmap therefore places the challenge of market depth alongside overall valuation growth.

For the SEC, attracting companies to public markets will require an environment in which the benefits of listing outweigh the associated disclosure obligations, regulatory costs and ownership considerations.

Investor protection, transparent financial reporting and efficient market infrastructure will also remain important to sustaining participation.

The success of the initiative will ultimately depend on whether Nigeria can translate its capital market ambitions into measurable growth in listings, investible securities and financing for productive businesses.

If implemented effectively, the roadmap could strengthen the market’s contribution to industrial expansion, infrastructure investment and broader economic development.

The N750 trillion target provides a long-term benchmark, but progress towards it will be measured by the quality and breadth of market participation rather than valuation growth alone.