Operators have expressed optimism that the ongoing market bull run would encourage more companies to tap the Nigerian Exchange (NGX) for long-term funding through initial public offerings (IPOs), rights issues and secondary offerings.

The optimism followed the latest Bloomberg ranking, which showed that Nigerian equities have become the world’s best-performing market this year, ahead of South Korea.

The validation comes at a crucial period for the Nigerian market, as banks have successfully concluded their recapitalisation exercise, raising fresh capital through public offers, rights issues, and private placements worth hundreds of billions of naira.

The successful banking recapitalisation exercise has demonstrated the domestic capital market’s capacity to mobilise long-term funds for the private sector.

Operators noted that the global recognition represents more than a strong investment return.

According to them, it demonstrated that the capital market is becoming deeper, more liquid and increasingly capable of supporting large-scale capital raises.

Managing Director of Crane Securities Limited, Mike Ezeh, said the Nigerian capital market is likely to witness an increase in IPOs and fresh listings as recent market reforms and global recognition continue to boost investor confidence.

He said the country’s improved standing in the global capital market, supported by stronger market infrastructure and international ratings, has created the right environment for more companies to raise funds through the Nigerian Exchange Limited (NGX).

According to Ezeh, Nigeria has made remarkable progress by moving from FTSE Russell’s standalone market classification to frontier market status within about 40 months, placing the market on course for another major global upgrade.

He noted that recent assessments by FTSE Russell and S&P Global have strengthened the country’s profile among international investors and could unlock between $50 million and $150 million in passive foreign investment inflows as global funds rebalance their portfolios.

“The market has made tremendous progress in a relatively short period. We are now on the right path towards a higher market classification, and this should encourage more IPOs and fresh listings,” he said.

Ezeh attributed the market’s rapid advancement to major improvements in its post-trade infrastructure, especially the migration from the T+3 settlement cycle to T+2 and, most recently, T+1 within five years.

He explained that the T+1 settlement cycle has reduced settlement risk, strengthened delivery discipline and improved investor confidence, making the Nigerian market more attractive to both local and foreign investors.

He added that the improved infrastructure has also paved the way for the digital distribution of shares in future public offers, making participation easier for domestic and foreign investors.

Vice President of Highcap Securities, David Adonri, said the growth could strengthen investor confidence and encourage more companies to raise capital from NGX, thus deepening the market.

Adonri said the development would likely lead to higher trading activity on the exchange, attract more local and foreign investors and encourage more firms to access the capital market through IPOs, rights issues and new listings.

During the first half (H1) of 2026, investors added almost N49 trillion to the value of listed equities, while the NGX all-share index (ASI) gained more than 48 per cent.

Market capitalisation also crossed the historic N160 trillion mark in May before moderating slightly following profit-taking in June. (Guardian)

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