Major state-owned and private companies, such as the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petroleum Refinery, have been encouraged to list their equities on the Nigerian Exchange market as part of the Federal Government’s renewed commitment to bolstering Nigeria’s capital market. Vice President Kashim Shettima made this known at Nasarawa State University’s 50th Inaugural Lecture, highlighting the importance of the Capital Market in attaining Economic Stability and the government’s $1 trillion economic goal. According to the Vice President, the revised Capital Market Master Plan was to boost market participation, draw in new listings, and revive investor confidence.
He emphasized that listing companies such as Nigeria LNG, Dangote Refinery, and NNPCL will improve market liquidity, draw in foreign investors, and support Nigeria’s economic development. The Nigerian Stock Market showed tenacity in the face of global economic difficulties, recording a 37% jump in 2023 and a 1.5% growth in early 2024. In January 2025 alone, market capitalization increased by ₦1.95 trillion, indicating rising investor confidence. Shettima credited this positive indicator to President Bola Tinubu’s pro-business policies, fiscal restraint, and reform that encourage investment.
Government’s commitment to capital market revitalization.
Also, the ongoing recapitalization of the banking sector and the increase in Pension fund assets, which by December 2024 had reached ₦20.5 trillion, further serve as proof of the administration’s economic progress. To further demonstrate its commitment to sustainable economic growth, the government invested in Sovereign Sukuk bonds, which collected ₦1.1 trillion to Finance federal road projects, and partnered with the International Finance Corporation to increase access to energy, Shettima added. The government’s efforts to revitalize the capital market could open up new avenues for investment, encourage economic diversification, and help Nigeria reach its ambitious $1 trillion Economy target.
In his inaugural lecture, capital market specialist Prof. Uche Uwaleke promoted the listing of state-owned businesses as a way to raise long-term funds for the advancement of the country. He proposed the establishment of a Special Purpose Vehicle to facilitate public Investment in vital industries like oil and gas. Uwaleke also suggested Infrastructure bonds, Tax breaks for recently listed businesses, and the securitization of public assets to free up idle capital and close Nigeria’s infrastructure deficit.
What the listing could translate to in the financial landscape.
The limited involvement of large corporations has long hampered the Nigerian capital market, which is a gauge of the nation’s economic strength. Through the promotion of the listing of businesses like NNPCL and Dangote Petroleum Refinery, the government hopes to increase the market’s depth and potential to raise funds for national development. These companies are not only among the largest in Nigeria, but they also operate in vital industries that support the national economy. Their listing would usher in a new era of confidence in the capital market and greatly boost the market’s total capitalization.
By doing so, companies are also compelled to embrace greater standards of corporate governance and transparency. Beyond boosting investor confidence, this would encourage a Culture of sound corporate governance across Nigeria’s economic environment. Such actions could boost Nigeria’s international standing and draw in foreign direct investments at a time when the nation is striving to rebuild confidence in its financial landscape. In the context of Nigeria’s current financial landscape, where the government is struggling with budget deficits and looking for alternate financing sources, a thriving capital market might offer a viable solution.
Related Article: Nigeria’s capital inflow drops in Q3 2024
Additionally, the presence of blue-chip companies like NNPCL and Dangote Petroleum Refinery on the Nigerian Exchange would raise the market’s visibility internationally. It might draw sizable foreign portfolio investments, which are necessary to increase foreign reserves and stabilize the nation’s foreign exchange market. In turn, this would improve macroeconomic stability and act as a buffer against foreign shocks. Strengthening the capital market may be essential to attaining inclusive growth and long-term economic resilience in the face of Nigeria’s present economic difficulties.