The Federal Government is urging major corporations, including the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petroleum Refinery, to list their stocks on the Nigerian Exchange (NGX). This initiative seeks to strengthen the capital market, attract investors, and boost economic growth.
This statement was made at the 50th Inaugural Lecture of Nasarawa State University in Keffi by Vice President Kashim Shettima, who was represented by Imaan Sulaiman-Ibrahim, Minister of Women Affairs. He underlined that reaching Nigeria’s economic target of $1 trillion requires a strong capital market.
Boosting Market Growth and Investor Confidence
Shettima highlighted the importance of listing NNPCL, Dangote Refinery, and Nigeria LNG on the stock exchange, stating that it would enhance liquidity, deepen market participation, and attract global investors. He noted that the Nigerian stock market had shown resilience, with a 37% surge in 2023 and a 1.5% increase in early 2024.
The NGX market capitalization grew by N1.95 trillion in January 2025 alone, reflecting strong investor confidence in Nigeria’s economic trajectory. Compared to January 2024, the market saw a remarkable N14.44 trillion increase.
Government Initiatives and Financial Sector Reforms
The Vice President reaffirmed the government’s commitment to strengthening the capital market by implementing the revised Capital Market Master Plan. The Securities and Exchange Commission has allocated N51.49 billion in its 2025 budget to support initiatives aimed at expanding market participation and boosting investor confidence.
These initiatives include enhanced regulatory oversight, the adoption of advanced technology, and the introduction of innovative financial products. Additionally, Nigeria’s successful Eurobond issuance without a roadshow further underscores growing global confidence in the country’s economic stability.
Privatization and Economic Development
Professor Uche Uwaleke, a Capital Market expert at Nasarawa State University, urged the Federal Government to sell stakes in state-owned enterprises via the NGX to raise long-term capital. He proposed creating a Special Purpose Vehicle (SPV) for public investment in the oil and gas sector, mirroring successful privatisation models in other emerging economies.
Uwaleke also emphasized that Nigeria’s capital market remains underutilized, with a total capitalization below 15% of GDP. He pointed out that just 10 of the 151 listed companies account for over 60% of market capitalization, making the market vulnerable to shocks.
Policy Recommendations for a Stronger Capital Market
To attract more listings, Uwaleke suggested tax incentives for newly listed companies, corporate tax reductions, and temporary tax holidays. He also proposed that universities issue bonds to finance research and infrastructure, with government-backed guarantees to enhance investor confidence.
Additionally, he recommended leveraging Real Estate Investment Trusts (REITs) and infrastructure bonds, such as Sukuk and Green Bonds, to finance smart cities and renewable energy projects. He called for securitization of public infrastructure by issuing securities backed by toll road revenues and utility payments.
A Promising Future for NGX Listings
In line with this vision, the Chairman of NGX Group, Dr. Umaru Kwairanga, revealed that two Dangote companies—Dangote Refinery and Dangote Fertilizer Limited—are set to be listed soon. He also urged legislative backing to compel NNPCL, NLNG, and pension fund administrators (PFAs) to list on the NGX.
Nigeria’s capital market is set to grow significantly as a result of these developments, which would promote long-term economic stability and investor wealth creation.
