FG UNVEILS PLAN TO GROW NIGERIA’S CAPITAL MARKET TO ₦750 TRILLION BY 2036

The Federal Government has unveiled a ten-year strategy aimed at expanding Nigeria’s capital market to ₦750 trillion by 2036, with the proposed listing of selected state-owned enterprises among the measures expected to deepen investment opportunities. The Federal Government has announced an ambitious plan to grow Nigeria’s capital market to ₦750 trillion by 2036, setting out a long-term target for mobilising investment and supporting economic development. The plan was announced by Vice-President Kashim Shettima during the unveiling of the Nigerian Capital Market Master Plan 2.0 at the National Capital Market Conference in Abuja. According to reports published on October 20, the strategy aims to increase the market from a baseline of approximately ₦250 trillion to ₦750 trillion over the next decade. The proposal places the capital market at the centre of the government’s broader economic development ambitions, capital market enables governments, businesses and other eligible organisations to raise long-term funds from investors, companies may obtain financing by issuing shares or debt instruments, while investors can purchase these instruments in pursuit of income and potential capital appreciation. A deeper and more active market can provide businesses with alternatives to conventional bank loans and create additional opportunities for investors. The government’s plan seeks to expand the scale of Nigeria’s market and strengthen its capacity to support infrastructure development and productive economic activity. However, achieving the target will depend on investor confidence, economic stability, effective regulation and the availability of attractive investment opportunities. One of the proposals associated with the plan is the listing of selected state-owned enterprises, including the Nigerian National Petroleum Company Limited and Nigeria LNG Limited, on the Nigerian Exchange, a listing can allow eligible investors to acquire shares in a company, subject to the structure and terms of the offer. If implemented, the proposed listings could broaden the range of companies represented on the exchange and attract additional investment. However, the proposal should not be confused with a completed transaction. The timing, structure, regulatory requirements and other details would need to be established through formal announcements. Any eventual offer would also need to clarify the rights of investors and the arrangements governing ownership and corporate accountability. A larger capital market could improve access to long-term funding for companies seeking to expand their operations, it could also provide investors with a broader range of financial instruments, although investment returns would not be guaranteed. For businesses, equity financing may reduce dependence on borrowing and provide capital for expansion, for the government, a stronger market could create additional channels for mobilising domestic savings and attracting foreign investment. Nevertheless, market growth alone does not guarantee that investment will translate into broad-based economic benefits. The quality of the investments, the strength of corporate governance and the productive use of funds will remain important considerations, investors need reliable information, transparent transactions and confidence that market rules will be enforced. The Securities and Exchange Commission and other relevant institutions therefore have important roles in protecting investors and supporting the credibility of the market. Public participation in investment opportunities also depends on financial literacy and access to accurate information, potential investors should understand the risks associated with shares and other financial instruments rather than assuming that government-backed or high-profile offers guarantee profits. The proposed ₦750 trillion target represents a significant ambition for Nigeria’s financial sector. Achieving it will require sustained economic growth, greater participation by businesses and investors, effective regulation and the development of a stronger investment culture. The government’s strategy also raises questions about how quickly the proposed reforms will be implemented and which measures will deliver the greatest impact. For now, the master plan sets out the direction of policy rather than guaranteeing a particular market outcome, Its success will ultimately depend on implementation and whether a larger capital market can provide sustainable financing for businesses, infrastructure and long-term economic development.