Nigeria’s capital market witnessed a significant surge in investor participation as over 500,000 new investors acquired bank shares during the ongoing recapitalisation exercise, the Securities and Exchange Commission has revealed.
In a policy update, the Commission disclosed that the exercise generated an estimated N29.83 trillion in wealth within the equities market in the first quarter of 2026 alone, underscoring its far-reaching impact on market expansion.
According to the SEC, total market capitalisation rose sharply from N99.38 trillion at the end of 2025 to N129.21 trillion as of March 31, 2026.
The Nigerian Exchange also recorded a strong rally, with its All Share Index climbing from 155,613 points to an all-time high of 201,287.78 points within the same period, representing a 29.35 per cent increase.
The Commission attributed the bullish trend to improved investor confidence as the recapitalisation deadline approached, alongside expectations of a more resilient and better-capitalised banking sector.
It highlighted February 2026 as a record-breaking month, during which market capitalisation increased by N17.6 trillion—the highest monthly gain ever recorded in Nigeria’s equities market.
Despite heavy equity offerings from banks, the SEC noted that the market maintained stability, supported by effective price discovery mechanisms and improved investor sophistication.
While the NGX Banking Index initially dipped in mid-2024 due to concerns over share dilution, the sector rebounded following successful capital injections and stronger bank balance sheets.
Beyond market performance, the Commission emphasized the broader structural impact of the recapitalisation exercise, noting that many of the new investors are first-time participants in the equities market.
It expressed optimism that a significant portion of these investors would remain active in secondary trading and future capital raises, thereby deepening liquidity and broadening market participation.
The SEC also noted that the exercise strengthened capacity across financial institutions, including investment banks, stockbrokers, registrars, and custodians, all of which handled unprecedented transaction volumes.
In addition, the Commission disclosed that a total of N4.65 trillion was mobilised through the capital market over the 24-month recapitalisation period, describing it as a testament to the strength of Nigeria’s financial market infrastructure.
Speaking on the development, the Director-General of the SEC, Emomotimi Agama, said the recapitalisation should be viewed as a foundation for long-term economic growth.
He stressed that the gains recorded so far signal the beginning of a more transformative phase, where the capital market plays a central role in financing national development.
