CIS and ASHON Hail FG Reforms as Nigerian Capital Market Hits Historic ₦100 Trillion Milestone

By Taiye Olayemi
Lagos, Jan. 9, 2026

In a landmark moment for Nigeria’s financial sector, the nation’s equity market valuation has officially crossed the ₦100 trillion threshold. This historic achievement, recorded by the Nigerian Exchange Ltd. (NGX), has been met with widespread acclaim from key industry bodies, who directly credit a series of targeted Federal Government reforms for creating the enabling environment for this growth.

The Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses (ASHON) issued a joint statement praising the government’s role. They described the ₦100 trillion market capitalisation as a powerful testament to the market’s “resilience, depth and growing sophistication.”

[[PEAI_MEDIA_X]]

The statement, signed by ASHON Chairman, Mr. Samuel Adenagbe, and CIS President and Council Chairman, Mr. Oluropo Dada, elaborated on the significance of this milestone. It is not merely a numerical record; it reflects a fundamental strengthening of the market’s core functions. According to the bodies, this achievement signals renewed investor confidence, improved market efficiency, and, most critically, the market’s proven capacity to mobilise long-term capital for national development.

Deconstructing the ₦100 Trillion Milestone: More Than Just a Number

Crossing this threshold is a multi-faceted success with deep implications:

• A Vote of Confidence: The valuation represents the aggregate judgment of millions of domestic and foreign investors. Their willingness to commit capital at this scale indicates trust in the regulatory framework and the long-term prospects of Nigerian companies.
• Liquidity and Depth: A larger market cap enhances liquidity, making it easier for large investors to enter and exit positions without causing drastic price swings. This attracts more institutional investors, creating a virtuous cycle of growth.
• Wealth Creation & Inclusion: As listed companies grow in value, so does the wealth of millions of Nigerians invested directly or through pension funds (RSA). This broad-based wealth effect is crucial for economic inclusion.
• Financing the Future: A deep, liquid capital market provides a viable alternative to bank lending for corporations. It allows for raising funds for expansion, infrastructure projects, and innovation through equity offerings and corporate bonds, directly fueling economic growth.

The Reform Engine: Key Policies Credited for the Boom

CIS and ASHON explicitly linked this success to a “supportive macroeconomic and regulatory environment.” While not named in the original statement, recent reforms underpin this sentiment. These likely include:

• Foreign Exchange (FX) Market Reforms: Efforts to unify exchange rates and improve FX liquidity have reduced a major deterrent for foreign portfolio investors, who have historically been wary of repatriation challenges.
• Proactive Regulatory Stance: The Securities and Exchange Commission (SEC) has been praised for “sound regulation and policy stability.” Initiatives like the revised Capital Market Master Plan, rules on FinTech, and digital offerings have modernized the market’s infrastructure.
• Fiscal and Monetary Policies: Government policies aimed at stimulating specific sectors (e.g., manufacturing, agriculture) improve the earnings potential of listed companies, thereby boosting their valuations. [[PEAI_MEDIA_X]]

The organisations extended congratulations to the leadership of the Nigerian Exchange Group (NGX Group) and Nigerian Exchange Ltd. (NGX), specifically commending the professionalism of Dr. Umaru Kwairanga (Group Chairman), Mr. Temi Popoola (CEO, NGX), Mr. Jude Chiemeka (CEO, NGX Regulation), and Mr. Femi Sobanjo (noted industry figure).

The Human Element: Stockbrokers and Dealing Firms as Market Pillars

The statement crucially highlighted the indispensable role of market intermediaries. It noted that dealing member firms and stockbrokers are “critical to sustaining liquidity, transparency and investor protection.” Their daily operations—executing trades, providing research, and ensuring compliance—are the engine room of the exchange. Their commitment directly “strengthens market integrity and broadens participation,” serving as the essential link between companies, the exchange, and the investing public.

“Crossing the ₦100 trillion threshold underscores the vital role of the capital market in financing growth, creating wealth and supporting national development objectives,” the statement affirmed.

Looking ahead, CIS and ASHON reaffirmed their commitment to ethical governance, innovation, and robust investor protection frameworks. They pledged continued collaboration with regulators and all stakeholders to further deepen the market, broaden the range of available products (such as derivatives and commodities), and ensure the capital market contributes to inclusive and sustainable economic growth for Nigeria. (NAN)

Edited by Kamal Tayo Oropo
Source link