The large-scale recapitalisation exercise conducted in Nigeria’s banking sector resulted in the inflow of 29.83 trillion naira in the African country’s equity market, according to the Securities and Exchange Commission (SEC) data, which tracked the market movement in the first 90 days of 2026.
In a policy briefing on the recapitalisation exercise, the commission disclosed that equity market capitalisation rose from 99.38 trillion naira at the close of 2025 to 129.21 trillion naira by March 31, 2026. The Nigerian Exchange All Share Index (NGX ASI) also surged from 155,613 points at the 2025-end to a historic high of 201,287.78 points by the end of Q1 2026, representing a 29.35% gain within three months.
February 2026 alone delivered a market capitalisation gain of 17.6 trillion naira, the highest single-month increase ever recorded in the history of the African country’s stock market.
SEC said the market also demonstrated structural resilience, despite the extraordinary volume of fresh equity supply that was introduced through public offers and rights issues by banks.
“The Nigerian equity market demonstrated reasonable price discovery throughout the recapitalisation period,” it added.
While the NGX Banking Index declined in mid-2024, as investors priced in dilution risks from anticipated large rights issues, the sector later made a strong comeback as capital was successfully raised and market participants reassessed stronger balance sheets, before expanding the lending capacity of recapitalised institutions.
“The market’s ability to manage valuation complexities in real time reflected growing analytical sophistication among institutional investors, stronger broker research, wider analyst coverage, and improved real-time data systems,” the SEC stated.
Beyond the stock market rally, the banking recapitalisation created broader structural benefits across the African country’s capital market ecosystem.
According to the SEC, about 500,000 new investors participated in various bank public offers between 2024 and 2026, with many being first-time equity investors.
“A significant number of these investors were expected to remain active in the secondary market and future public offerings, thereby deepening market liquidity and broadening the investor base. The exercise rebuilt institutional capacity across investment banks, stock broking firms, registrars, custodians and issuing houses, which handled unprecedented transaction volumes during the recapitalisation process,” the commission remarked.
According to the SEC, Nigeria’s capital market mobilised 4.65 trillion naira over the 24-month recapitalisation period, proving the capabilities of Nigeria’s market infrastructure, investor community and regulatory framework, when it comes to supporting large-scale national transformation.
Director-General of SEC, Dr Emomotimi Agama, said the recapitalisation exercise should be seen not as an isolated success, but as the foundation for a stronger financial market capable of financing Nigeria’s long-term development.
“The recapitalisation has demonstrated that the Nigerian capital market is resilient. It is the Commission’s unwavering determination to ensure that resilience becomes transformation. The story of the 4.65 trillion naira raised should be remembered not as a peak achievement, but as the beginning of a more consequential era in which the capital market plays a central role in financing the nation’s future,” he concluded.