FG plans incentives to attract more companies to NGX

The Federal Government plans to introduce incentives to encourage privately owned businesses to list on the Nigerian Exchange Limited (NGX), as part of efforts to increase the number of listed companies from 146 to 250 by 2036.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this at the 2026 National Capital Market Conference in Abuja, where he outlined the proposed Nigerian Capital Market Master Plan 2026–2036.

Oyedele said the government would rely on incentives to attract private businesses to the capital market rather than compel them to list, as it seeks to deepen the market, increase investment opportunities and broaden participation.

“We cannot force them. We would encourage Nigerian private businesses to list. We will use incentives to attract them,” he said.

Under the proposed master plan, the government is targeting an increase in equity market capitalisation from 33 per cent of gross domestic product (GDP) to at least 60 per cent, while retail investor participation is expected to rise from six million to 20 million.

The plan also targets an increase in corporate bond issuance to more than three times its current level as a share of GDP, growth in sukuk market penetration from 0.3 per cent to at least five per cent of GDP, and an expansion of pension assets from six per cent to 16 per cent of GDP.

Oyedele said the proposed plan would focus on coordinated regulation, modern market infrastructure, new investment products, wider investor participation and stronger institutions.

He attributed renewed investor interest in Nigeria to the economic reforms introduced by the government, citing the growth in equity market capitalisation, pension assets and the country’s re-entry into international market indices.

According to him, equity market capitalisation has risen from less than N30 trillion in mid-2023 to about N160 trillion, while pension assets have reached N27.5 trillion.

He also cited Nigeria’s inclusion in a new J.P. Morgan government bond index, with a weight of 7.4 per cent, and its reinstatement in the FTSE Russell Frontier Market Index on September 21, 2026.

Oyedele said the government was working to secure Nigeria’s return to J.P. Morgan’s flagship government bond index and an upgrade to the emerging-market category.

He added that he had engaged MSCI, a global index provider, and international credit rating agencies as part of efforts to improve the country’s position among investment destinations.

The government is also targeting an investment-grade credit rating within the next three years, a goal Oyedele said would depend on sustained reforms, improved market liquidity and reliable repatriation of foreign investors’ funds.

To make the market more accessible, the proposed master plan would seek to simplify investor onboarding, strengthen custody arrangements, improve settlement systems and reduce barriers to cross-border investment.

Oyedele also proposed the introduction of a single investor identification number and the use of mobile network operators and financial technology platforms to widen access to investment opportunities.

The measures are intended to make participation easier for retail investors while improving the market’s capacity to attract domestic and foreign capital.