Stockbrokers Call for Strategic Capital Market Alignment with Nigeria’s Productive Economy

The Chartered Institute of Stockbrokers (CIS) has called upon regulators, policymakers, and market operators to direct more investment toward Nigeria’s productive sectors. This directive comes amid concerns regarding market concentration, as the ten largest companies on the Nigerian Exchange (NGX) currently represent approximately 72% of total market capitalization.

The recommendation was central to the Institute’s 30th Annual Conference in Lagos, held under the theme “From Capital Mobilised to Prosperity Realised: Financing Nigeria’s Next Era of Growth and Global Competitiveness.”

Deliberations emphasized that the true measure of capital market success should not merely be the volume of funds mobilized, but the ability of that capital to drive industrial expansion, infrastructure development, and job creation.

Concerns Over NGX Market Concentration

Dr. Fiona Ahimie, President of the CIS and the 14th Chairman of Council, asserted that the capital market must serve as a vital link between savings and businesses requiring long-term financing. She stressed that capital mobilization must translate into tangible, productive investments that improve national living standards.

Bolaji Balogun, CEO of Chapel Hill Denham, noted that while the market raised N6.49 trillion in 2025, the heavy concentration of value within the top ten listed companies remains a challenge. He pointed out that market capitalization currently represents only about 37% of Nigeria’s Gross Domestic Product (GDP).

While acknowledging advancements in market infrastructure—such as the Investments and Securities Act 2025, extended trading hours, and streamlined settlement cycles—Balogun warned that these improvements alone would not increase market depth. He advocated for a wider array of quality listings, increased investor participation, and the integration of the capital market into government privatization and infrastructure concession programs. He specifically identified project bonds, Sukuk, green and orange bonds, infrastructure funds, and convertible securities as essential tools for expanding financing opportunities.

Dr. Ahimie, the first woman to hold the presidency of the CIS, further challenged stakeholders to ensure that raised funds are directed toward projects capable of delivering sustainable economic benefits.

Leveraging Pension Funds for Infrastructure

Omolola Oloworaran, Director-General of the National Pension Commission, identified pension assets as a critical source for long-term financing of infrastructure and business expansion. However, she cautioned that such investments must be managed with strict prudence to ensure the protection of contributors’ retirement savings and the delivery of sustainable returns. She noted that limited liquidity, inadequate listings, weak price discovery, and market concentration currently hinder effective pension fund investment.

Patience Oniha, Director-General of the Debt Management Office, echoed the need for deeper participation in the domestic bond market, diversified funding sources, and enhanced institutional collaboration. She emphasized that debt capital must be deployed productively to strengthen fiscal stability and generate economic returns.

Otunba Francis Meshioye, Chairman of the Manufacturers Association of Nigeria, linked these financing hurdles to Nigeria’s estimated $2.3 trillion infrastructure deficit. He argued that the primary issue is not a lack of available capital, but rather the limited channels through which funds reach manufacturers and other productive enterprises. Meshioye advocated for the use of infrastructure bonds, green bonds, Sukuk, credit guarantees, export finance, and public-private partnerships to support industrial growth, while also calling for better access to long-term financing and SME funding.

Expanding Listing Opportunities and Market Depth

Conference participants encouraged family-owned businesses and corporate founders to list on the NGX to diversify the market and mitigate concentration risks. They cited the N2.15 trillion Dangote Refinery Initial Public Offering (IPO) as a benchmark for the market’s capacity to attract significant domestic and international interest. The offering, which involved 4.1 billion shares at N525 each, reportedly drew investors from all 54 African nations.

During the event, the CIS launched a N5 billion endowment fund dedicated to professional development, research, scholarships, and a professorial chair. The Institute also reached a milestone by inducting 509 Associates—its largest intake to date—and elevating 63 members to Fellowship status.

Lagos State Governor Babajide Sanwo-Olu noted that the state has successfully utilized the capital market to raise over N200 billion for infrastructure development. He endorsed the CIS endowment initiative and pledged the Lagos State Government’s support.

NGX Group Chairman Umaru Kwairanga urged stockbrokers to evolve beyond mere transaction execution, encouraging them to actively assist businesses and government entities in securing necessary financing. Additionally, SEC Director-General Dr. Emomotimi Agama highlighted the importance of leveraging technology to enhance regulatory oversight, market surveillance, and investor protection.

The conference, which included the maiden Presidential Awards and industrial visits to Berger Paints Nigeria Plc and Vitafoam Nigeria Plc, reinforced the mandate that capital market success must be defined by the economic value, jobs, and businesses it helps to create.

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