Nigerian companies have raised approximately N1.5 trillion in debt capital over the past two quarters, reflecting strong investor confidence and a focus on strategic sectors such as infrastructure, agriculture, and sustainable finance.

Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC), disclosed this during the second Capital Market Committee (CMC) meeting for 2025 in Lagos. He noted that debt, equity, and commercial paper markets were particularly active between April and October 2025.

Notable debt programs included the N500 billion Climate Funding SPV and the N200 billion Elektron Finance bond, while the commercial paper market saw issuance exceeding N753 billion across sectors such as manufacturing, energy, and agriculture.

“These figures demonstrate sustained confidence in Nigeria’s market regulatory framework,” Dr. Agama said, highlighting growing investor interest in infrastructure and sustainable finance.

Market Reforms and Settlements

The SEC has also implemented key reforms to enhance efficiency, deepen investor confidence, and accelerate digital transformation in Nigeria’s capital market. A major milestone was achieved on November 28, 2025, with the transition from T+3 to T+2 settlement cycles, moving Nigeria closer to T+1 and eventually T+0 settlements.

Dr. Agama explained that shorter settlement cycles boost liquidity, reduce counterparty risk, and accelerate capital reinvestment, covering the Nigerian Exchange, NASD OTC Securities Exchange, and Lagos Commodities and Futures Exchange.

Macro and Market Developments

Since the previous CMC meeting in May, Nigeria has seen several positive developments:

• Sovereign credit rating upgrade
• Removal from the FATF grey list
• Inflation easing to 16.05% YoY in October, the lowest since March 2025

Despite a sharp market downturn in November, with the All-Share Index dropping nearly 7% and market capitalization falling by N6.54 trillion, Dr. Agama said the market has demonstrated resilience, with a modest recovery following government reassurances on fiscal and tax policies.

Capacity Building and Financial Inclusion

The SEC continues to drive financial inclusion and market development, integrating capital market studies into secondary schools and collaborating with Nnamdi Azikiwe University on SME-focused conferences. The Commission is also reinforcing Nigeria’s leadership in non-interest finance, showcasing initiatives like N1.4 trillion sovereign Sukuk issuances and the growth of Islamic mutual funds.

Preparations are underway for a Municipal Bond and Sukuk Summit in Q1 2026, while efforts to deepen the commodities and derivatives markets include:

• Updating commodity standards with the Standards Organisation of Nigeria (SON)
• Enhancing risk mitigation through insurance brokers
• Unlocking mining finance via the Ministry of Solid Minerals
• Securing liquidity status for warehouse receipts in collaboration with the CBN
• Strengthening oversight of commodity exchanges

The SEC is also modernizing regulations under the Investments and Securities Act (ISA) 2025, covering commodity exchanges, collateral managers, warehouse operators, and derivatives markets, while implementing real-time surveillance systems to strengthen market integrity.

Digital Transformation and Technology Adoption

The SEC’s Digital Transformation Portal now allows capital market operators to submit applications, track approvals, and issue commercial paper electronically, with cybersecurity enhancements underway.

A May 2025 Technology Adoption Survey revealed that while cloud computing and cybersecurity tools are increasingly adopted, advanced technologies like AI and big data remain under 10%. Over 70% of firms plan to adopt AI, blockchain, and regtech within three years, despite challenges such as high costs and skill shortages.

Dr. Agama emphasized that innovation must be ethical and responsible, safeguarding investor data and maintaining market integrity.

Corporate Governance and Forward Outlook

The SEC will implement a Harmonized Corporate Governance Reporting Template in 2026 to streamline public company disclosures. Renewal of registration for capital market operators is scheduled from January 1–31, 2026, with electronic processing commencing in Q1 2026.

“A strong capital market is not built in a day; it is shaped by vision, collaboration, and resilience,” Dr. Agama concluded, reaffirming the SEC’s commitment to building a transparent, innovation-driven capital market that catalyzes sustainable economic growth.