CIS, ASHON push N750trn market-cap target as reforms gather pace

Nigeria’s capital market stakeholders have been challenged to sustain the momentum of reforms, deepen retail investor participation and strengthen market infrastructure to achieve the ambitious N750 trillion market capitalisation target, following a series of major developments in 2026.

The Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) gave the charge while commending the Securities and Exchange Commission (SEC), the Federal Ministry of Finance, Nigerian Exchange Limited and other market stakeholders for reforms and initiatives they said had strengthened the market’s capacity to mobilise capital and attract investors.

In a joint congratulatory message signed by Dr. Fiona Ahimie, 14th President and Chairman of Council of CIS, and Sehinde Adenagbe, Chairman of ASHON, the bodies identified Nigeria’s return to FTSE Russell Frontier Market status, the launch of the Nigerian Capital Market Master Plan 2.0, the National Savings Scheme and the transition to a T+1 settlement cycle among the significant milestones recorded during the year.

They also described the ongoing initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals as a defining moment for the market, demonstrating its capacity to mobilise substantial capital for large-scale enterprises while widening public participation in wealth creation.

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The commendation comes as the market pursues a more ambitious growth trajectory, with the two professional bodies stressing that the achievements recorded so far must translate into sustained capital formation, stronger investor confidence and broader economic development.

According to them, the SEC’s regulatory leadership and initiatives to mobilise domestic savings, expand investor participation and improve market accessibility would be critical to achieving the ₦750 trillion market capitalisation target.

They also commended the Federal Ministry of Finance for collaborating with the SEC and other stakeholders in developing and launching the National Savings Scheme, which they said could encourage retail investment, promote financial inclusion and expand the pool of domestic funds available for productive economic activities.

However, CIS and ASHON warned that the scheme’s success would depend on effective implementation, sustained institutional collaboration and widespread public awareness to encourage more Nigerians to participate in the capital market.

Another major development highlighted by the organisations was Nigeria’s adoption of the T+1 settlement cycle on June 1, 2026, which reduced the time required to settle securities transactions.

The bodies said the transition had improved settlement efficiency, reduced counterparty exposure and enhanced capital utilisation, while bringing Nigeria’s market infrastructure closer to international standards.

The shorter settlement cycle is also expected to support market efficiency by allowing investors to access funds from completed transactions sooner, although the long-term benefits will depend on effective implementation and sustained operational performance.

The organisations further welcomed Nigeria’s return to FTSE Russell Frontier Market status, describing it as an opportunity to improve the country’s visibility among international investors.

They noted that continued improvements in market accessibility, foreign exchange liquidity, capital repatriation and regulatory transparency would be necessary to strengthen Nigeria’s attractiveness to foreign portfolio investors.

The return to frontier market status, they added, should be supported by measures that address investors’ operational concerns and reinforce confidence in the country’s investment environment.

The ongoing Dangote Petroleum Refinery and Petrochemicals IPO was also singled out as a significant test of the market’s capacity to accommodate large-scale capital-raising transactions and expand retail participation.

The extension of the offer period to October 27, 2026, they said, had provided prospective investors with additional time to participate in the transaction.

CIS and ASHON emphasised the role of stockbrokers and digital distribution platforms in widening access to the offer, urging market intermediaries to strengthen investor engagement and facilitate participation by retail investors.

They said the transaction demonstrated the potential of the capital market to connect large enterprises seeking long-term funding with a broader pool of domestic investors.

Beyond these developments, the two bodies cited banking sector recapitalisation, the expansion of digital investment platforms, improvements in market infrastructure and growing attention to sustainable finance as factors reinforcing the market’s role in financing enterprise development and economic growth.

They also recognised the contributions of stockbrokers and securities dealing firms, whose professional intermediation, investment advisory services, distribution networks and engagement with investors remain central to the functioning of the market.

While CIS stressed the importance of professional competence, ethical conduct and continuous capacity development, ASHON highlighted the resilience and operational commitment of securities dealing firms in supporting market development.

Despite the progress recorded, the organisations warned that sustaining growth would require stronger retail participation, improved investor protection, technological innovation, high professional and ethical standards, and a more conducive business environment.

They urged regulators, market operators, government institutions, issuers and investors to maintain close collaboration in implementing reforms and ensuring that the benefits of market expansion extend beyond rising valuations.

The bodies said the ultimate objective should be to translate capital market growth into increased investment, business expansion, employment generation and improved economic prosperity.

They congratulated the Nigerian capital market community on the achievements recorded in 2026, expressing optimism that the reforms and market initiatives would provide a stronger foundation for capital formation and investor confidence.

They, however, stressed that achieving the N750 trillion target would require sustained commitment from all stakeholders, with particular emphasis on broadening the investor base, strengthening market institutions, and ensuring that the capital market plays a greater role in financing Nigeria’s economic development.