Some financial experts have urged the federal government to list major government-owned enterprises (GOEs) on the Nigerian Exchange Ltd. (NGX) to consolidate the country’s position as Africa’s second-largest stock market.

The experts made the call in separate interviews on Tuesday in Lagos.

The Chief Executive Officer of Economic Associates, Ayo Teriba, said the listing of strategic state assets remains critical to expanding the market and attracting more investment.

He said the federal government could list its stakes in the 11 electricity distribution companies, the Transmission Company of Nigeria (TCN), the Nigerian Railway Corporation and other assets on the NGX.

“We envisage the government listing its holdings in these enterprises to deepen the market and unlock value.

“Countries such as China and Saudi Arabia have leveraged state-owned assets to boost market capitalisation and investor participation,” Mr Teriba said.

He attributed the recent improvement in the stock market to stronger external reserves and reforms in the foreign exchange market.

According to him, the liberalisation of the foreign exchange market and policies supporting bureau de change (BDC) operators and international money transfer operators (IMTOs) have improved foreign exchange supply and strengthened reserves.

“Previously, the market was characterised by multiple exchange rates and distortions, but the willing-buyer, willing-seller framework has improved remittances, strengthened the naira and enhanced market confidence,” he said.

Mr Teriba added that sustained appreciation of the naira would encourage foreign investors to hold local assets and increase participation in the stock market.

Also, Senior Researcher at BAA Consult, Benjamin Akinsoto, urged regulators to reduce bureaucratic bottlenecks to attract more foreign investors.

He noted that domestic investors currently account for about 80 per cent of market transactions, while foreign participation stands at about 20 per cent.

“Foreign investors face challenges such as account prefunding requirements, which slow transactions and limit timely participation in the market.

“Reducing these constraints will encourage more foreign inflows and further expand the size of the market,” Mr Akinsoto said.

He recalled that Nigeria had previously been upgraded to frontier market status and stressed the need for policies that would support the return of foreign investors.

The National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, said improving macroeconomic conditions and ongoing reforms had restored investor confidence.

He noted that reforms such as fuel subsidy removal and exchange rate adjustments initially created challenges for businesses, but companies had gradually adapted.

“Businesses are adjusting to the reforms, and confidence is returning to the market.

“The expected listing of Dangote Petroleum Refinery in the coming months will further deepen the market and increase its value,” Mr Igbrude said.

Nigeria emerged as Africa’s second-largest stock market in 2026, overtaking Morocco after a nearly two-year rally that transformed the NGX into one of the continent’s best-performing exchanges.

The NGX was valued at about $117 billion as of May 15, 2026, behind only South Africa’s Johannesburg Stock Exchange (JSE), which has a market capitalisation of about $1.5 trillion. 

(NAN)