The Securities and Exchange Commission has revealed that Nigeria’s ongoing banking sector recapitalisation exercise has generated an estimated N29.83tn in wealth within the equity market over the first quarter of 2026, highlighting the programme’s significant impact on capital market expansion.
In a policy update on the exercise, the Commission stated that total market capitalisation rose sharply from N99.38tn at the end of 2025 to N129.21tn as of March 31, 2026.
It further noted that the Nigerian Exchange All Share Index recorded a strong upward movement, climbing from 155,613 points at the close of 2025 to an all-time peak of 201,287.78 points by the end of March 2026, reflecting a 29.35 percent increase within just three months.
According to the SEC, investor sentiment improved significantly as the March 31 recapitalisation deadline for banks approached, supported by expectations of a stronger and more resilient banking system.
The regulator also highlighted that February 2026 stood out as a record-breaking month, with market capitalisation increasing by N17.6tn—described as the highest monthly gain ever recorded in the Nigerian equities market.
Despite the influx of large equity offerings from banks, the Commission said the market maintained stability and effective valuation adjustment throughout the period.
“The Nigerian equity market demonstrated reasonable price discovery throughout the recapitalisation period,” the commission stated.
It explained that although the NGX Banking Index experienced a temporary decline in mid-2024 due to investor concerns over share dilution from anticipated capital raises, the sector later rebounded strongly. This recovery followed successful capital injections and a reassessment of improved bank balance sheets and expanded lending capacity.
The SEC attributed the market’s orderly performance to increasing sophistication among institutional investors, improved analytical coverage by market researchers, and stronger real-time trading data systems.
Beyond market performance, the Commission noted that the recapitalisation exercise had wider structural effects on Nigeria’s financial ecosystem.
It estimated that around 500,000 new investors participated in bank public offerings between 2024 and 2026, many of whom entered the equities market for the first time.
The SEC added that a significant portion of these investors are expected to remain active participants in secondary trading and future equity issuances, thereby strengthening market liquidity and broadening investor participation.
It also observed that the exercise helped build capacity across financial service providers, including investment banks, stockbroking firms, registrars, custodians, and issuing houses, all of which managed unprecedented transaction volumes during the recapitalisation period.
According to the Commission, the experience gained across these institutions will remain valuable for future capital-raising activities in both public and private sectors.
In addition, the SEC disclosed that a total of ₦4.65tn was mobilised through the capital market over the 24-month recapitalisation period, describing this as evidence of the strength of Nigeria’s regulatory framework and market infrastructure in supporting large-scale financial mobilisation.
SEC Director-General, Dr. Emomotimi Agama, said the recapitalisation exercise should be viewed as a foundation for long-term economic growth rather than a standalone achievement.
“The recapitalisation has demonstrated that the Nigerian capital market is resilient. It is the Commission’s unwavering determination to ensure that resilience becomes transformation,” he said.
He further stressed that the ₦4.65tn raised should not be seen as the peak of market achievement, but rather the beginning of a more impactful phase in which the capital market plays a central role in financing Nigeria’s development agenda.
ENDS.
