A Year of Growth and Transformation in the Nigerian Capital Market: 2024-2025 Review
The Nigerian capital market experienced a period of significant growth and transformation in 2024, marked by substantial dividend payouts, robust new issuances, and strategic mergers and acquisitions, according to the Securities and Exchange Commission (SEC). These developments underscore the increasing maturity and resilience of the market, contributing to enhanced investor confidence and wealth creation. The SEC’s active role in regulating and facilitating these activities has played a crucial role in fostering a stable and vibrant investment environment.
A key highlight of 2024 was the impressive total dividend declaration of N1.1 trillion by listed companies on the Nigerian Exchange, with N1 trillion already disbursed to shareholders. This reflects the strong financial performance of listed companies and their commitment to rewarding investors. The robust dividend payouts signal positive market sentiment and reinforce the attractiveness of the Nigerian equity market for both domestic and foreign investors.
The market also witnessed a surge in new issuances, totaling N3.68 trillion in 2024. This comprised N59.82 billion from fixed-income instruments and a remarkable N3.62 trillion from equities. This substantial inflow of capital demonstrates strong investor appetite for the equity segment, further solidifying the market’s position as a key driver of economic growth. The trend continued into 2025, with approved new issuances reaching N446.38 billion between January and April, including N265.90 billion in fixed income and N180.48 billion in equities.
Mergers and acquisitions (M&A) activity also contributed significantly to market dynamism in 2024. The SEC approved 11 transactions with a combined value of N320.36 billion. The most prominent deal was N Seven Nigeria Ltd.’s acquisition of a 58.02% equity stake in Guinness Nigeria Plc, valued at over N103.7 billion. Other notable transactions included Flour Mills of Nigeria Plc’s scheme of arrangement valued at over N105 billion and Transnational Corporation Plc’s share capital reconstruction worth N5.08 billion. This wave of M&A activity reflects the ongoing strategic realignments and consolidation within key sectors of the Nigerian economy. In 2025, three major transactions valued at N38.53 billion were approved, comprising two takeovers and one corporate restructuring, indicating continued market activity despite the absence of mergers in the review period.
The collective investment schemes (CIS) sector also demonstrated robust growth, reaching a combined net asset value of N3.84 trillion by the end of 2024. With 184 registered mutual funds and over 800,000 unitholders, the CIS segment plays a critical role in mobilizing savings and channeling them towards productive investments. The expansion of privately managed portfolios, with 444 investment vehicles and N4.69 trillion in assets under management, further underscores the growing sophistication and diversification of the Nigerian investment landscape. The combined assets under management by 82 active asset management firms reached N8.53 trillion, highlighting the increasing importance of professional fund management in capital formation and wealth creation.
The SEC’s emphasis on fostering a fair, transparent, and inclusive market is crucial for sustained growth and investor confidence. By promoting regulatory best practices, enhancing market surveillance, and empowering investors through financial literacy initiatives, the SEC is creating a conducive environment for long-term investment and sustainable economic development. The commission’s commitment to stakeholder engagement and collaboration is essential for navigating the evolving challenges and opportunities in the Nigerian capital market. As the market continues to mature and integrate with global financial markets, the SEC’s proactive and forward-looking approach will play a vital role in ensuring its continued success.
