Nigeria's capital market demonstrated remarkable strength in 2024, with listed companies on the Nigerian Exchange Limited delivering tidy returns to shareholders while maintaining robust fundraising activities, according to the Securities and Exchange Commission.
Record Dividend Payments Signal Market Confidence
Companies listed on the Nigerian Exchange declared a total of N1.1 trillion in dividends to shareholders throughout 2024, with N1 trillion already distributed to investors, SEC Director-General Emomotimi Agama announced in a Sunday statement. This substantial payout reflects growing market confidence and improved investor returns across the exchange.
The dividend distribution represents a significant milestone for the Nigerian capital market, demonstrating the profitability and cash generation capabilities of listed companies while rewarding shareholders for their investments.
Capital Raising Reaches New Heights
The commission approved an impressive N3.68 trillion in new issues during 2024, highlighting strong investor appetite and issuer confidence in Nigeria's capital markets. The breakdown reveals a heavy preference for equity financing, with N3.62 trillion raised through equity instruments compared to N59.82 billion from fixed income securities.
This trend continued into 2025, with the SEC approving N446.38 billion in new issues between January and April. However, the composition shifted significantly, with fixed income instruments accounting for N265.90 billion while equity raises totaled N180.48 billion, suggesting a rebalancing toward debt financing in the current period.
Major Corporate Transactions Drive Market Activity
The mergers and acquisitions landscape remained active throughout 2024, with the SEC approving 11 transactions valued at N320.36 billion. The year's most significant deal involved N Seven Nigeria Limited's acquisition of a 58.02 percent stake in Guinness Nigeria Plc, worth over N103.7 billion.
Corporate restructuring activities also featured prominently, including the notable scheme of arrangement involving Flour Mills of Nigeria Plc, valued at over N105 billion, and Transnational Corporation Plc's share capital reconstruction through a one-for-four share consolidation worth N5.08 billion.
The momentum has continued into 2025, with three major transactions worth N38.53 billion approved year-to-date, comprising two takeovers and one corporate restructuring. While no mergers have been recorded in the current review period, the steady pace of market activity indicates continued interest in strategic consolidation across key sectors.
Investment Management Sector Experiences Robust Growth
Nigeria's collective investment schemes sector recorded substantial expansion, with registered mutual funds reaching 184 vehicles by the fourth quarter of 2024. These funds collectively managed N3.84 trillion in net asset value while serving over 800,000 unitholders.
The broader investment management landscape proved even more impressive, with privately managed portfolios and products growing to 444 vehicles managing N4.69 trillion in assets. In total, 82 active asset management firms now oversee N8.53 trillion in investments across the market.
According to Agama, these figures demonstrate a maturing market where professional fund management is increasingly recognized as a critical driver of capital formation and wealth creation. The growth reflects sustained confidence in Nigeria's investment management capabilities and the expanding sophistication of the country's financial services sector.
Market Outlook Remains Positive
The comprehensive data released by the SEC paints a picture of a dynamic and growing capital market that continues to attract both domestic and international investment. The sustained activity across equity and debt segments, combined with robust dividend payments and active corporate restructuring, suggests that Nigerian companies are successfully leveraging capital markets to finance growth and investment initiatives.
The strong performance across all market segments indicates that Nigeria's capital market infrastructure is effectively supporting economic development while providing attractive returns to investors. As professional fund management continues to expand and corporate activity remains steady, the market appears well-positioned for continued growth and development in the coming years.
