By Chibuzor Alli
The Nigerian Exchange Group is looking to major public offers and new company listings to unlock wider participation in the stock market as it pursues a N300tn market capitalisation target.
The exchange is banking on initiatives such as the Dangote Refinery initial public offering and a potential domestic listing by fintech firm OPay to bring more Nigerians into the capital market and broaden the pool of businesses raising funds locally.
The chairman of NGX Group, Umaru Kwairanga, disclosed the strategy at the 30th anniversary and annual awards dinner of the Association of Issuing Houses of Nigeria in Lagos, where he called for more retail investors and government-linked enterprises to participate in the market.
“Market capitalisation has risen from below N50 trillion three years ago to over N160 trillion, and we are aiming for N300 trillion,” Kwairanga said.
The target would require the exchange to build on the market’s expansion from below N50tn three years ago to more than N160tn, while attracting additional companies and investors capable of sustaining growth.
Dangote IPO raises hopes of wider participation
The Dangote Refinery IPO is expected to provide a significant test of the exchange’s ability to attract individual investors at scale. Kwairanga said the offer was targeting 10 million investors, potentially widening participation in a market that has recorded fewer than six million investors since Nigeria’s independence.
A successful drive to bring more individuals into the market could expand domestic ownership of major companies and give businesses access to a broader source of capital.
The NGX chairman also revealed that the exchange had raised the possibility of OPay listing in Nigeria before pursuing an overseas listing. He said President Bola Tinubu had directed the Governor of the Central Bank of Nigeria to examine the matter as the fintech company works towards a domestic listing.
A local listing by a major technology company could add depth to the market, diversify the range of available investments and give Nigerian investors access to a wider selection of businesses.
Exchange seeks more government-linked companies
Beyond high-profile private-sector offers, Kwairanga urged the Federal Government to encourage more state-linked companies, particularly in the energy and technology sectors, to list on the exchange.
More listings could increase the range of investment opportunities available to domestic investors and strengthen the stock market’s role in financing economic activity.
The drive is also linked to Nigeria’s ambition to build a $1tn economy, with a deeper capital market expected to play a role in mobilising long-term funds for businesses and development.
Kwairanga said technology had already transformed the exchange from manual processes to digital transactions, adding that continued innovation would be essential to attracting younger investors.
Digital access could make it easier for individuals to participate in public offers and other investment opportunities without relying on traditional, physical processes.
Investment bankers call for deeper market
President of the Association of Issuing Houses of Nigeria, Kemi Awodein, said the association would continue working with regulators, government and investors to deepen the market, strengthen transparency and encourage innovation.
She noted that the market had changed considerably over the past three decades, with instruments such as green bonds and book-building becoming important parts of its development. She also highlighted the capital market’s role in mobilising funding for growth and job creation.
Group Deputy Managing Director of Afrinvest, Victor Ndukauba, pointed to investment banking’s contribution to Nigeria’s corporate development through bank consolidation, mergers and acquisitions, and bond issuance.
He cited transactions involving the creation of the present-day United Bank for Africa, the formation of Stanbic IBTC Bank, GTBank’s international expansion and Lagos State’s pioneering bond issue as examples of the sector’s influence.
Ndukauba said digital platforms would increasingly shape capital raising by helping issuers reach investors more efficiently and allowing individuals to participate from their homes. He cited the digital-first approach of the Dangote Refinery IPO as an example of this shift.
At the event, AIHN recognised several firms for their contributions to the development of Nigeria’s capital market.
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