SEC Targets 20m Investors as Liquidity Task Force Debuts
The Securities and Exchange Commission (SEC) has inaugurated a Capital Market Working Group on Market Liquidity with a mandate to attract up to 20 million new investors into Nigeria’s capital market through technology-driven solutions.
Director-General of the SEC, Emomotimi Agama, who inaugurated the Working Group on Friday in Abuja, said expanding investor participation is critical to strengthening market liquidity and resilience.
He noted that despite strong growth in market capitalisation, active participation remains limited to a relatively small segment of the population, creating structural weaknesses within the system.
According to him, a shallow investor base undermines efficient capital allocation as trading activity becomes concentrated among a few institutional players and a narrow group of retail investors.
Agama said the Commission would leverage digital platforms and fintech partnerships to convert millions of passive savers into active investors.
“I want you to explore how technology can onboard the next 20 million investors, turning passive savers into active market participants,” he said, outlining the mandate of the newly inaugurated group.
He cited ongoing initiatives such as the dematerialisation of share certificates and collaboration with financial technology firms as key steps toward simplifying access to capital market products.
The SEC chief added that the recently enacted Investments and Securities Act 2025, which brings digital assets under regulatory oversight, presents opportunities to channel speculative capital into regulated investment instruments.
“We must accept the reality that the lines between traditional finance and digital finance are blurring. With the enactment of the Investments and Securities Act (ISA) 2025, digital assets are now under our regulatory purview. We must determine how to channel the speculative energy currently going into unproductive gambling into liquid, productive investments within regulated exchanges,” Agama stated.
Providing further insight, he disclosed that Nigeria’s market capitalisation has risen from about N55 trillion in April 2024 to over N123.93 trillion, while the market’s contribution to Gross Domestic Product (GDP) has increased from 13 per cent to 33 per cent.
However, he cautioned that the headline figures mask uneven liquidity across listed securities, as trading remains concentrated in a few highly active stocks, leaving many equities thinly traded and making price discovery more volatile.
Broader participation, he said, would enhance price discovery, reduce volatility and strengthen investor confidence.
Agama described the capital market as a vital engine for national development, capable of financing infrastructure, industry and job creation when functioning efficiently. He urged members of the liquidity task force, drawn from exchanges, custodians, fund managers and dealing members, to deliver practical recommendations that would deepen the market and expand access for ordinary Nigerians.
Recent data show that the equities market closed January 2026 on a strong note, rising 6.27 per cent as over 15 billion shares changed hands. The All-Share Index climbed from 155,612.9 points to 165,370.4 points, gaining 9,757.5 points and breaking above the 160,000 mark for the first time.
In February, the rally continued, with the All-Share Index crossing the 190,000 mark on February 17, 2026, underscoring renewed investor appetite and momentum in the market
Related to this topic:
