Stockbrokers urge capital market to finance real economy
AI Executive Briefing
Gemini Flash AI~45s readThe Chartered Institute of Stockbrokers (CIS) held its 30th Annual Conference to urge a strategic pivot toward financing Nigeria's productive economy. Industry leaders emphasized that market success should be measured by economic development and job creation rather than just the volume of funds mobilised.
Context & Background
- ✦Nigeria faces an estimated $2.3 trillion infrastructure deficit, necessitating more effective use of capital market instruments.
- ✦The market is currently characterized by high concentration in the top 10 listed companies and a market capitalisation that represents only about 37% of Nigeria's GDP.
Key Figures & Named Entities
•Dr. Fiona Ahimie, 14th President of the CIS, emphasized that capital mobilisation must translate into productive investment.•Bolaji Balogun, CEO of Chapel Hill Denham, noted that the market raised N6.49 trillion in 2025.•Lagos State Governor Babajide Sanwo-Olu reported that the state has raised over N200 billion through the capital market for infrastructure.
Outlook & Next Steps
Stakeholders are encouraged to promote more quality listings, integrate the capital market into government privatisation programmes, and leverage new instruments like green bonds and Sukuk to broaden market participation.
Key Takeaways
AI Summary- The Chartered Institute of Stockbrokers (CIS) is advocating for a shift in focus from mere capital mobilisation to directing investments toward Nigeria's productive economy and infrastructure development.
- Market concentration remains a significant concern, with the 10 largest companies on the Nigerian Exchange (NGX) accounting for approximately 72% of total market capitalisation.
- Stakeholders, including pension fund managers and government officials, are pushing for the use of diverse financial instruments like Sukuk, green bonds, and infrastructure funds to bridge Nigeria's estimated $2.3 trillion infrastructure deficit.
Key Facts:2025: The capital market successfully raised N6.49 trillion in 2025.N2.15 trillion: The Dangote Refinery Initial Public Offering (IPO) involved 4.1 billion shares priced at N525 each, totaling N2.15 trillion.N5 billion: The Chartered Institute of Stockbrokers launched a N5 billion endowment fund to support research and professional development.
Editorial Excerpt
The Chartered Institute of Stockbrokers (CIS) has urged capital market operators, regulators and policymakers to channel more investments into Nigeria's productive economy, as the 10 largest companies on the Nigerian Exchange (NGX) account for approximately 72% of total market capitalisation.
Frequently Asked Questions About This Story
What is the primary concern regarding the current structure of the Nigerian Exchange (NGX)?
The primary concern is market concentration, as the 10 largest companies account for approximately 72% of total market capitalisation, limiting market depth.
How does the National Pension Commission view the role of pension assets in the economy?
The Commission identifies pension assets as a potential source of long-term financing for infrastructure, business expansion, and employment, provided investments remain prudent and protect retirement savings.
