- NGX Market Cap Hits N160tn as Tinubu Backs NNPCL Listing
- Targets Capital Market Expansion
- Says $1tn Economy Within Reach
President Bola Ahmed Tinubu has backed plans to deepen Nigeria’s capital market and use it as a major source of long-term financing for businesses, infrastructure and other productive sectors of the economy.
Eko Hot Blog reports that the President’s support followed discussions with the management of Nigerian Exchange Group (NGX) Plc on plans to reform and list Nigerian National Petroleum Company Limited (NNPCL) on the exchange.
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Tinubu spoke during a meeting with the NGX board and management and members of the Economic Management Team at the Presidential Villa, Abuja, at the weekend.
The meeting focused on strategies to sustain the recent growth of the Nigerian capital market and position it as a stronger channel for mobilising domestic and international capital for economic development.
The NGX team presented the market’s performance over the past three years, noting that market capitalisation had risen from about N30 trillion in 2023 to approximately N160 trillion.
The NGX All-Share Index also increased from about 52,000 points to 244,000 points within the period.
The exchange further reported growth in trading activities, domestic participation and foreign portfolio investment, while stressing that the next phase of development should focus on converting market gains into sustained capital formation.
Tinubu said Nigeria’s target of building a $1 trillion economy was achievable, stressing the need to attract greater private sector investment and expand the sources of long-term capital available to businesses.
The President also disclosed plans to reform and list NNPCL on the capital market, a move that could broaden public ownership of the company while creating an additional avenue for mobilising funds for economic development.
He commended NGX Group for its contribution to the development of Nigeria’s capital market and acknowledged the role of the Economic Management Team in implementing reforms aimed at improving macroeconomic stability and restoring investor confidence.
Chairman of NGX Group, Umaru Kwairanga, said the performance of the capital market demonstrated that sound economic reforms, policy consistency and strong institutions could restore investor confidence and unlock private capital.
Kwairanga described the capital market as critical national infrastructure capable of financing businesses, supporting industrialisation, creating jobs and promoting inclusive economic growth.
Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, said the priority was now to convert the market’s strong performance into sustained capital formation, enterprise expansion, infrastructure development and wealth creation.
He said achieving the $1 trillion economic target would require deep pools of domestic and international capital, with the capital market playing a central role in financing major companies, infrastructure and productive sectors.
To further deepen the market, NGX Group proposed the privatisation and listing of commercially viable government assets, domestic or dual listings of leading Nigerian companies, clearer capital gains tax treatment for listed securities and increased use of capital market instruments to finance infrastructure and industrial development.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the Nigerian capital market as one of the fastest avenues for creating wealth for millions of Nigerians.
He urged NGX and the Securities and Exchange Commission to intensify efforts to expand participation and deepen the market.
The proposed NNPCL listing, if implemented, would represent a major step in the Federal Government’s efforts to expand the role of the capital market in financing Nigeria’s economic growth and increasing public participation in commercially viable state assets.
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