The federal government plans to introduce incentives to
encourage more private companies to list on the Nigerian Exchange (NGX)
Limited, as it targets an increase in the number of listed companies from 146
to 250.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, spoke on Monday at the National Capital Market Conference 2026
held in Abuja.
He said the target forms part of the proposed Nigerian
capital market master plan 2026–2036, which aims to deepen the market and
broaden investor participation.
According to Oyedele, the plan would focus on coordinated
regulation, modern market infrastructure, new investment products, broader
investor participation and stronger institutions.
“The plan should target increasing equity market
capitalisation from 33 per cent of gross domestic product to at least 60 per
cent, raising the number of listed companies from 146 to 250 and expanding
retail investors from six million to 20 million,” the minister said.
He said the government would encourage private businesses to
list through incentives rather than compel them to do so.
“We cannot force them. We would encourage Nigerian private
businesses to list. We will use incentives to attract them,” he said.
Oyedele proposed more than tripling corporate bond issuance
as a share of gross domestic product (GDP), increasing sukuk market penetration
from 0.3 percent to at least 5 percent of GDP, and raising pension assets from
6 percent to 16 percent of GDP.
‘NIGERIA’S ECONOMIC REFORMS REVIVING INVESTOR INTEREST’
The minister said Nigeria’s economic reforms had helped
revive investor interest, citing growth in equity market capitalisation, rising
pension assets and renewed attention from international index providers.
He said equity market capitalisation had increased from less
than N30 trillion in mid-2023 to about N160 trillion, while pension assets had
reached N27.5 trillion.
Oyedele also cited the inclusion of Nigerian government
bonds in a new J.P. Morgan government bond index, with a weight of 7.4 percent,
and Nigeria’s reinstatement in the FTSE Russell Frontier Market Index on
September 21, 2026.
He said the government is working towards returning Nigeria
to J.P. Morgan’s flagship government bond index and securing an upgrade to the
emerging-market category.
The minister added that he had engaged MSCI, a global index
provider, and international credit rating agencies as part of efforts to
improve Nigeria’s standing among investment destinations.
He said the government is targeting an investment-grade
credit rating within the next three years, adding that achieving the goal would
require sustained reforms, improved market liquidity and reliable repatriation
of foreign investors’ funds.
Oyedele said the master plan would also introduce measures
to simplify investor onboarding, strengthen custody arrangements, improve
settlement systems and reduce barriers to cross-border investment.
The minister proposed a single investor identification
number and investment channels through mobile networks and fintech platforms to
make participation easier for Nigerians.
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