NGX at 65 : Nigeria’s stock market witnessed tremendous expansion – Analysis

The Nigerian Exchange Group (NGX group) remains a vital institution for wealth creation and economic growth in the country in the last 65 years, despite challenges such as the global financial crisis, recession, and fluctuating investor confidence. Blueprint.ng correspondent reports.

The NGX has navigated numerous storms, including policy decisions by authorities that have adversely affected the capital market, contributing to low investor participation.

The depreciation in the prices of stocks in 2008, from an all-time high market capitalization of N13.5 trillion in March 2008 down to under N4.6 trillion by early 2009 impacted negatively on the sector and growth of the nation’s economy.

Numerous challenges

Notwithstanding the downfall, the market continues to weather these challenges, witnessing tremendous expansion, transformation and continued providing a platform for sustainable capital formation.

The stock market which started with only 13 securities has added different segments, new products to increase the trading activities.

Available data showed that the market capitalization of the listed equities appreciated by N151.279 trillion in the last eight years.

The market closed the year 2018 at N11.720 trillion rising by 1290.78 per cent to close transactions on September 28, 2026 at N162.999 trillion.

The NGX All Share Index also surged by 221,205.61 basis points or 703.79 per cent to close at 252636.11 points on September 28, 2026 against 31430.50 points recorded December 31, 2018.

Today, the NGX stands as a central institution in the Nigerian capital market, facilitating the long-term capital formation critical to the nation’s economic growth.

The foundation

The NGX founded and incorporated as Lagos Stock Exchange on September 15, 1960, started operation officially on August 1961. The institution rebranded as Nigerian Stock Exchange on December 1977 and completed it’s demutualisation to become Nigerian Exchange Group (NGX group) 2021.

Under both military and civilian administrations, the NGX has evolved to become one of Africa’s largest capital markets.

Commenting on the performance of stock market since its inception, Chief Research Officer (CRO), Investdata Consulting Ltd, Mr Ambrose Omordion said the nation’s capital market has witnessed tremendous expansion, transformation since it started operations 65 years ago.

He said the market has maintained steady growth, transforming from manual- call up transactions system to digital trading, thereby creating opportunity for smooth running of the market.

He said that things needed to deepen capital market is ongoing, stressing that every sector of the market ranging from Banking, Oil and gas, Insurance, industry sectors and others have embarked on reforms to ensure stability in the system.

Listing heavyweight firms

He said the listing of heavyweight companies like MTN Nigeria, Aradel, Airtel Africa, SeplatEnergy and others have helped to deepen the market, noting that the ongoing IPO of Dangote Refinery will not only  encourage a lot of people to invest  in capital market but it will create room for more companies to get listed at the Exchange

Omordian said although the market is doing very well when compared to it’s peers from other countries, there is need for NGX to embark on grass root literacy campaign.

He said educating people at the grassroot will encourage more local investors to participate in stock market, adding that those investors who got their fingers burnt during 2008 and 2009 market downturn are still skeptical about the performance of the market.

He expressed optimism that with the IPO coming back at the NGX, more people will be willing to invest in the stock market.

Collaboration with SEC

He however expressed the need for capital market regulator- Securities and Exchange Commission (SEC) and NGXgroup to ensure that local investors continue dominating activities at the market, insisting that allowing foreign investors to take over the market will have negative impact on the market and economy in general.

He explained that foreign investors may likely withdraw their investment from the market with little shock or crisis in the economy.

Citing an example, he said dumping of shares by foreign investors during global financial meltdown hit hard on Nigerian stock market, leading to massive share price depreciation.

He said equities market remained stable in the recent times because it is dominated by local investors.

Also speaking, Managing Director Chief Executive Officer APT Securities and Funds Limited, Malam Garba Kurfi, said

 the NGX which established 1960 Lagos Stock Exchange, started operation 1961 has expanded its transaction floors to major commercial cities across Nigeria.

Over 300 securities made of 147 equities

He said, “The market started with only thirteen securities made of Fixed Income and Equities but today we have over 300 securities made of 147 equities, ETFs, Fixed Income, mutual funds among others.

He said that within the period of existence, the market has transformed into different segments from single segment to various segments such as Premium, Main Board, ETF, Mutual Funds, Fixed Income, Derivatives among others.

Market Capitalization today has grown to over N160 trillion

He said Market Capitalization today has grown to over N160 trillion while NGX index stood above 250,000 points

Kurfi noted that although the market has sustained growth trajectory in the recent years, it has witnessed a lot of challenges along the line in the past and has opportunity to correct itself.

He said with the transformation and segmentation in the market, the downturn experienced previously in stock market  would be difficult to repeat again we have many products in the system today, noting that as the stocks share prices decline for some period  it will correct its self and that is the game of the market.

In addition to this, he said the market has   now transformed into Order management system

(OMS) of trade as  stockbrokers can now trade from their various offices without hindrance.

An Order Management System is a software platform used by stockbrokers and financial institutions to manage the entire lifecycle of a trade—from the initial order entry and compliance checks to routing and execution on the trading boards of the Nigerian Exchange Group (NGX).

Internal and external challenges

He said within the period of existence, the market recorded growth and also experienced both internal and external challenges, adding that the global financial Crisis of 2007/ 2008 impacted negatively on the performance of the market.\

He said the 2018/ 2019 Covid ’19 crisis went further to distablise business and market activities.

He explained that before the market witnessed downfall on 2007/2008 financial year, it has recorded about seven years of continuous gains from 2000 to 2007, noting that the market recorded the same growth trend before declining in the year 2018/2019.

He stated that since the market resumed operation after Covid ’19 in 2020 till date it has sustained almost six years consecutive gain.

He, however said that within the reviewed period the NGX has moved from T+3 transactions cycle to T+2 six hours daily transactions, before moving to T+1 with eight hours transactions per day in 2026.

The new transactions system according to him enabled the buyer and seller receive securities and cash respectively one day after trade is executed.

He listed impressive financial result from major listed companies as factors that contributed to the sustained growth of the market.

He said that Oil & Gas and Industrial Goods delivered returns that more than doubled the market average.

He stated that currency stability and gross external reserves which rose above $51.4 billion by the end of June, helped to stabilize the naira and improve foreign investor sentiment.

Speaking further, he said.

“We need to increase the depth of the market by bringing Fintech, NLG, Electricity Distribution companies among others to get listed in the market. We also need to introduce Derivatives product of companies aside the Sectorial derivatives”