The nation’s capital market in 2024 witnessed a lot of development that help shaped
the sector within the year.
The adoption of technology, especially digitalization of public offering and right issue encourages participation of the youths in the market
Although the economic challenges in the country persisted during the year, the market recorded growth trend.
Capital operators said the problem of high inflation, insecurity, depreciating exchange rate, increase in pump price of petrol and the introduction of a windfall tax that affected sectoral performances, impacted on the market activities during the year.
But despite all the challenges the nation’s capital market showed impressive growth within the year, outpacing most African peers in year to Date (YTD) performance.
According to Managing Director of Arthur Stephens Management Limited,Mr Olatunde Amolegbe the Nigerian capital market is a key driver of economic growth, offering a platform for mobilizing capital, facilitating investments, and fostering wealth creation.
He said that in 2024, the market experienced notable developments shaped by regulatory changes, technological adoption, and macroeconomic factors as 2025 beckons, understanding the successes, challenges, and emerging opportunities is essential for unlocking its full potential.
Speaking on the performance of the capital market in the year, he said the NGX-ASI grew by 35.25 per cent from 74,773.77 in December 29, 2023 to 101129.09 as at Friday December 20, 2024. This growth was driven by robust earnings from blue-chip companies and supportive government policies.
In his paper titled, “Unlocking the Potential of the Nigerian Capital Market: Challenges and Opportunities contribution, he said “The Nigerian equity market saw a significant 39.84 per cent growth in first quarter 2024, rising from 74,773.77 to 104,562.06. The NGX market capitalization increased from N40.917 trillion in January 2024 to N59.487 trillion in the first quarter, representing 44.49 per cent. This growth was significantly influenced by new listings, such as Transcorp Power Plc, which added N1.8 trillion to market value upon listing.“
However, the second and third quarters experienced modest corrections, with declines of -4.31 per cent in second quarter and -1.50 per cent in third quarter. This was driven by economic challenges, including high inflation, a depreciating exchange rate, and the introduction of a windfall tax that affected sectorial performances, particularly within the Banking sector.
“Profit-taking and rising interest rates that redirected investments to fixed income securities and that despite the smaller decline in third quarter, investors remain cautiously optimistic.
