Nigerian Capital Market Sees Remarkable Growth Under Tinubu's Reforms

Strategic Insights -

The President Bola Tinubu administration has undertaken bold reforms in the Nigerian capital market since its inception on May 29, 2023, that have ignited investor confidence, attracted fresh inflows, and positioned the market as a critical engine for national economic transformation. The removal of fuel subsidies, floatation of the naira, and enactment of the Investment and Securities Act (ISA) 2025 have significantly impacted Nigeria's capital market, leading to a remarkable 112.7% increase in the Nigerian Exchange (NGX) All-Share Index (ASI) from 51,251.06 in 2022 to 109,028.62 by May 2025.

Key Takeaways:

  • The NGX ASI surged by 45.4% in 2023, closing at 74,502.58, and continued its rally into 2025, hitting 109,028.62 by May, a cumulative gain of over 112% since Tinubu assumed office.
  • ISA 2025, signed into law on March 29, 2025, is hailed by stakeholders as the most transformative capital market policy in nearly two decades, introducing wide-ranging reforms to modernize Nigeria's market and align it with global standards.
  • The recapitalization drive, launched by the Central Bank of Nigeria (CBN) in 2024, has injected new life into the market, boosting liquidity and investor confidence.
  • The mandatory recapitalization exercise of banks formed the bulk of transactions in the Primary Market, while several public companies that were wounded by the floating of the naira also approached the Primary Market to refinance their liabilities.
  • New listings on the NGX have enhanced market capitalization and investor confidence, with approximately N12.17 trillion in new listings in 2024, comprising both Federal Government of Nigeria (FGN) bonds and corporate securities.
  • Corporate listings accounted for N6.2 trillion, while FGN bonds contributed N5.95 trillion, with notable listings including Transcorp Power Plc, Aradel Holdings Plc, and Haldane McCall Plc.

Statistics:

  • NGX ASI increased by 45.4% in 2023, closing at 74,502.58.
  • The NGX ASI hit 109,028.62 by May 2025, a cumulative gain of over 112% since Tinubu assumed office.
  • Foreign transactions declined by 90.99% in April 2025, down to N63.07 billion from N699.89 billion recorded in March.
  • Nigeria's poverty rate stands at 38.9% in 2023, translating to 87 million people living below the poverty line.
  • The Central Bank of Nigeria's (CBN) benchmark interest rates were raised to 27.5% in 2025.
  • The Nigerian Bureau of Statistics (NBS) recalibrated inflation metrics in January 2025, bringing the headline figure down to 24.48%.
  • The naira plummeted from N1,000/$1 in late 2023 to N1,600/$1 by mid-2024.
  • Corporate listings accounted for N6.2 trillion, while FGN bonds contributed N5.95 trillion in 2024.

Sources:

  • "Nigerian Capital Market Sees Remarkable Growth Under Tinubu's Reforms" (article)
  • Nigerian Exchange (NGX)
  • Central Bank of Nigeria (CBN)
  • Investment and Securities Act (ISA) 2025
  • Securities and Exchange Commission (SEC)