Capital market contribution to GDP surges to 33 percent - SEC
The Securities and Exchange Commission (SEC) has revealed that the Nigerian Capital market contribution to the Gross Domestic Product (GDP) has surged from 13 percent to 33 percent in just 23 months.
Addressing the inaugural meeting of the Capital Market Working Group on Market Liquidity in Abuja, Dr. Agama characterized this 125 percent growth as a definitive signal of the market's evolving role in financing national development.
He argued that the capital market is no longer merely a venue for speculation but has become the essential engine that powers industrial factories, funds critical road infrastructure, and facilitates large-scale job creation.
This rapid ascent in GDP share reflects the success of recent administrative reforms and a growing investor appetite for regulated Nigerian assets.
Despite these record-breaking figures, the SEC leadership maintains that the market’s increased economic weight must be supported by deeper liquidity and more robust trading infrastructure to be sustainable.
Dr. Agama noted that while the size of the market has expanded significantly, the concentration of trades in a few highly capitalized stocks remains a structural challenge.
To ensure that the 33 percent GDP contribution translates into a resilient and inclusive economy, the Commission is now prioritizing price discovery and trading efficiency.
This involves a comprehensive review of settlement cycles and a move to modernize trading infrastructure to ensure Nigeria remains competitive with other emerging global markets.
The drive toward a trillion-dollar economy is further supported by the recently enacted Investments and Securities Act, which has empowered the SEC to regulate digital assets and channel speculative interest into formal, productive investment products.
By integrating fintech partnerships and targeting a massive expansion in retail participation aiming for 20 million new investors, the SEC intends to democratize access to the wealth-building potential of the market.
The Working Group, chaired by Nigerian Exchange Group CEO Temi Popoola, is now tasked with diagnosing the remaining bottlenecks to ensure that the capital market continues its trajectory as the bedrock of Nigeria’s macroeconomic prosperity.