The Nigerian capital market is set to shift its focus from record capital mobilisation and rising market valuations to the impact of funds raised on jobs, industrial output, infrastructure, and household wealth. This change in focus comes as the market value of listed companies approaches N160 trillion. The Chartered Institute of Stockbrokers (CIS) will discuss this shift at its 30th Annual Stockbrokers' Conference in November.
The conference, themed 'From Capital Mobilised to Prosperity Realised: Financing Nigeria's Next Era of Growth and Global Competitiveness,' will take place on November 4 and 5 in Lagos. Chairman of the Conference Committee, Saheed Bashir, stated that the central question for the market is no longer just how much capital it can mobilise or how far market indices can rise, but what those funds ultimately deliver to the wider economy.
The value of listed companies has risen dramatically from roughly N30 trillion in May 2023 to about N160 trillion. However, Bashir cautioned that rising market values should not be treated as synonymous with improved living standards. He stressed the need for a stronger transmission mechanism between capital-market activity and economic growth.
The proposed shift comes after significant capital mobilisation in Nigeria's securities market, including the ongoing Dangote Refinery public offer. The offer involves 4.1 billion new shares at N525 each, targeting a raise of about N2.15 trillion. The CIS believes that such transactions should contribute to productive capacity, employment, infrastructure, and broader economic activity.
Bashir identified deeper institutional investment, macroeconomic stability, and improved investor confidence as important conditions for strengthening the market's role as a source of long-term finance. He also called for greater transparency in the utilisation of funds raised from investors, arguing that the market should demonstrate how capital mobilisation translates into measurable economic outcomes.
The conference will examine how Nigeria can deepen participation by both local and international investors. Key issues to be discussed include market access, efficient repatriation of investment proceeds, and transparent foreign-exchange arrangements. The institute also wants greater retail participation in the capital market, alongside product innovation and improvements in market infrastructure and technology.
The conference is expected to bring together policymakers, regulators, stockbrokers, investors, and international stakeholders to consider how the securities market can contribute to Nigeria's long-term economic development. A policy communiqué containing recommendations to government and financial-market regulators is expected at the end of the conference. The CIS also plans to develop an outcome framework for tracking the wider economic impact of capital mobilisation.
Key points
- Stockbrokers to focus on jobs and industrial output as market value approaches N160 trillion
- The 30th Annual Stockbrokers' Conference to discuss the impact of funds raised on the economy
- The conference aims to deepen participation by local and international investors in the capital market
