The Securities and Exchange Commission (SEC) has inaugurated a Capital Market Working Group on Market Liquidity with a bold mandate to attract up to 20 million new investors into Nigeria’s capital market through technology-driven solutions.
Director-General of the Commission, Emomotimi Agama, inaugurated the working group on Friday in Abuja, stressing that broadening investor participation is critical to strengthening market liquidity and resilience.
Agama noted that although Nigeria’s capital market has recorded significant growth in recent months, active participation remains limited to a relatively small segment of the population.
According to him, a shallow investor base weakens the market’s ability to efficiently allocate capital, as trading activity is concentrated among a handful of institutional players and a narrow pool of retail investors.
He said the Commission plans 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,” Agama told members of the newly inaugurated group.
He cited ongoing initiatives such as the dematerialisation of share certificates and collaboration with financial technology firms as key measures aimed at simplifying access to capital market products.
Agama also highlighted the significance of the Investments and Securities Act (ISA) 2025, which brings digital assets under regulatory oversight. He said the law provides an opportunity to channel speculative capital into regulated investment instruments.
“We must accept the reality that the lines between traditional finance and digital finance are blurring,” he said. “We must determine how to channel the speculative energy currently going into unproductive gambling into liquid, productive investments within regulated exchanges.”
While Nigeria’s market capitalisation has risen from about N55 trillion in April 2024 to over N123.93 trillion, Agama said structural weaknesses persist, particularly uneven liquidity across listed securities.
He added that the market’s contribution to GDP has increased from 13 per cent to 33 per cent, describing the growth as impressive but insufficient.
Trading activity, he explained, remains concentrated in a few highly active stocks, leaving many equities thinly traded and making it difficult for investors to enter or exit positions without affecting prices.
Agama described the capital market as a critical engine for national development capable of financing infrastructure, industry, and job creation when functioning efficiently. He urged members of the working group to deliver practical recommendations that will deepen the market and make investment opportunities more accessible to ordinary Nigerians.
