Amid an environment marked by inflationary pressures, high interest rates, and structural economic challenges, Nigeria’s capital market has defied the odds to emerge as one of the most vibrant segments of the economy under President Bola Tinubu’s administration.
Two years into his presidency, investor confidence has soared, propelling record-breaking performance in both the primary and secondary markets and reaffirming the Nigerian Exchange’s relevance on the global financial stage.
A Historic Surge in Market Performance:
When President Tinubu assumed office on May 29, 2023, the All-Share Index (ASI) of the Nigerian Exchange Limited (NGX)—a key barometer of stock market performance—stood at 52,973.88 points. As of May 27, 2025, the ASI had skyrocketed to 111,606.22 points, marking a staggering gain of 110.68 percent in just two years. This explosive growth in equity prices translated into significant wealth creation for investors and confirmed the stock market’s growing appeal amid an otherwise challenging economic climate.
The NGX delivered a full-year return of 45.90 per cent in 2023, amounting to capital gains of ₦12.81tn. The momentum continued into 2024 with an average return of 37.65 per cent, resulting in an additional ₦15.41tn in investor wealth. These back-to-back stellar performances placed Nigeria among the world’s top three performing stock markets during this period.
Market Confidence Bolstered by Reforms and Stability
A key factor underpinning the capital market’s robust performance has been investor confidence, which has remained remarkably strong despite rising inflation and policy-induced volatility. Analysts and market operators attribute this resilience to several policy actions and reforms initiated by the Tinubu administration.
The peaceful transition of power following the 2023 general elections created a stable political environment, while decisive economic measures, such as the removal of fuel subsidies, the floating of the naira, and the harmonization of foreign exchange rates—signaled a break from the past and a commitment to market-oriented reforms.
Though initially painful, these actions restored fiscal credibility and attracted renewed interest from both domestic and foreign investors.
Capital Formation and Primary Market Expansion:
Another key development during Tinubu’s first two years in office was the revival of the primary segment of the capital market. Between January 2024 and April 2025, the Securities and Exchange Commission (SEC) approved capital raising activities totaling ₦4.12tn. In 2024 alone, ₦3.68tn was raised through new issues, the bulk of which were equity-based. This reflects a notable shift in investor preference toward equities, with ₦3.62tn raised through equity offerings and ₦59.82bn through fixed-income instruments.
The capital raising surge was driven by two primary factors which are the Central Bank of Nigeria’s mandatory recapitalization directive for banks, and refinancing efforts by companies adversely affected by the floating exchange rate. Many of these firms turned to the capital market to restructure liabilities and shore up operational capital.
Within the first four months of 2025, the SEC had already approved an additional ₦446.38bn in new issues, including ₦265.90bn in fixed-income and ₦180.48bn in equity instruments. These figures highlight a strong and sustained momentum in the market’s capital formation capacity.
Consolidation in the Corporate Space
The past two years also witnessed increased merger and acquisition (M&A) activity, reflecting a wave of corporate restructuring and strategic repositioning. In 2024 alone, the SEC approved 11 M&A transactions valued at ₦320.36bn. The largest deal involved the acquisition of a 58.02 percent equity stake in Guinness Nigeria Plc by N Seven Nigeria Limited for ₦103.7bn. These transactions not only injected liquidity into the market but also demonstrated the increasing sophistication of Nigeria’s corporate finance landscape.
Regulatory Reform And Institutional Strengthening:
President Tinubu’s administration has made concerted efforts to strengthen the regulatory framework governing Nigeria’s capital market. One of the most significant developments in this regard was the reconstitution of the SEC board and the appointment of Dr. Emomotimi Agama, a seasoned capital market professional and long-serving SEC official, as the new Director-General.
Further advancing this reform agenda, President Tinubu signed the Investments and Securities Act (ISA) 2025 into law, repealing the outdated ISA 2007. This landmark legislation introduced comprehensive changes aimed at improving investor protection, modernizing regulatory oversight, and aligning Nigeria’s capital market practices with international standards.
Among the key provisions of the ISA 2025 are the formal recognition of virtual assets—such as cryptocurrencies—as securities, bringing them under SEC regulation.
The Act also expands the definition of securities to include investment contracts, thereby encompassing a broader array of financial instruments. It introduces a new classification system for securities exchanges, distinguishing between Composite Exchanges, which can list all types of securities, and Non-Composite Exchanges, which are limited to specific categories.
The new law also prescribes severe penalties for promoters of fraudulent investment schemes and Ponzi operations, signaling a tougher stance on investor protection and market integrity.
Speaking on the new legislation, Dr. Agama described the Act as a transformative milestone that will empower the SEC to foster innovation, deepen the market, and reposition Nigeria as a globally competitive investment destination.
Expert Perspectives: Evaluating Market Performance:
Reviewing the state of the market since the emergence of new administration, some financial analysts in an exclusive interview with THE WHISTLER noted that the market recorded remarkable expansion in both the primary and secondary market segments over the past two years of the administration.
The Managing Director of Highcap Securities Limited, Mr. David Adonri commended the administration of President Bola Tinubu for fostering substantial growth in Nigeria’s capital market, noting a remarkable expansion in both the primary and secondary market segments over the past two years.
Adonri explained that the capital market operates through two main segments: the Primary Market, where issuers raise capital to finance operations, and the Secondary Market, which provides liquidity and investment opportunities for investors. “The capital market plays a pivotal role in wealth creation and job generation across the economy,” he stated.
According to him, the two years of President Tinubu’s administration have significantly revitalized both market segments. “Capital raising activities have surged to levels not seen since before the 2008 global financial crisis,” Adonri observed.
He attributed much of the Primary Market’s recent activity to the Central Bank of Nigeria’s mandatory recapitalization directive for banks, as well as refinancing moves by public companies impacted by the naira’s floating exchange rate.
“The Primary Market in this period is like a candle burning at both ends. Equity issuance has grown rapidly, while debt capital raising by both public and corporate issuers has also reached unprecedented levels,” he said.
Adonri described the growth of the Secondary Market as even more dramatic. “It is difficult to put into words the phenomenal rise the equities market has experienced since President Tinubu assumed office,” he said.