The Securities and Exchange Commission (SEC) has unveiled a Capital Market Working Group on Market Liquidity as part of efforts to expand participation in Nigeria’s capital market with an ambitious mandate to attract up to 20 million new investors into Nigeria’s capital market through technology-driven solutions.
Director-General of the SEC, Emomotimi Agama, who inaugurated the Working Group on Friday, February 20, 2026, in Abuja, said expanding investor participation is critical to strengthening market liquidity and resilience.
He noted that despite strong growth in market capitalization, active participation remains limited to a relatively small segment of the population, creating structural weaknesses within the system.
According to him, a shallow investor base undermines efficient capital allocation as trading activity becomes concentrated among a few institutional players and a narrow group of retail investors.
Agama said the Commission would leverage digital platforms and fintech partnerships to convert millions of passive savers into active investors.
Outlining the panel’s responsibilities, the SEC Director – General indicated that technology would play a central role in achieving the commission’s objectives.
“I want you to explore how technology can onboard the next 20 million investors, turning passive savers into active market participants,” he said, outlining the mandate of the newly inaugurated group.
He cited ongoing initiatives such as the dematerialization of share certificates and collaboration with financial technology firms as key steps toward simplifying access to capital market products.
The SEC chief added that the recently enacted Investments and Securities Act 2025, which brings digital assets under regulatory oversight, presents opportunities to channel speculative capital into regulated investment instruments.
“We must accept the reality that the lines between traditional finance and digital finance are blurring. With the enactment of the Investments and Securities Act (ISA) 2025, digital assets are now under our regulatory purview. We must determine how to channel the speculative energy currently going into unproductive gambling into liquid, productive investments within regulated exchanges,” Agama stated.
Providing further insight, he disclosed that Nigeria’s market capitalization has risen from about N55 trillion in April 2024 to over N123.93 trillion, while the market’s contribution to Gross Domestic Product (GDP) has increased from 13 per cent to 33 per cent.
However, he cautioned that the headline figures mask uneven liquidity across listed securities, as trading remains concentrated in a few highly active stocks, leaving many equities thinly traded and making price discovery more volatile.
Agama described the capital market as a vital engine for national development, capable of financing infrastructure, industry and job creation when functioning efficiently. He urged members of the liquidity task force, drawn from exchanges, custodians, fund managers and dealing members, to deliver practical recommendations that would deepen the market and expand access for ordinary Nigerians.