The Chartered Institute of Stockbrokers (CIS) has revealed that Nigerian banks raised approximately N2 trillion from the primary market in 2024. According to the Institute’s President, Oluropo Dada, this achievement was highlighted during a recent event at the Nigerian Exchange Limited (NGX).
The fundraising reflects the banking sector’s strategic involvement in capital markets to boost liquidity, enhance lending capacity, and fund growth initiatives. The primary market activities, including Initial Public Offerings (IPOs), bond issuances, and other capital-raising instruments, were key to this success. Despite economic challenges, the market exceeded expectations in 2024, demonstrating resilience, profitability, and reliability.
Dada also emphasized that the stock market delivered year-to-date returns in excess of 36%, outpacing the inflation rate and positioning itself as one of the few markets providing positive returns in Nigeria this year. The market capitalization saw significant growth, driven by new listings. He noted that the close to N2 trillion raised by banks underpinned strong liquidity and financial health.
The positive outlook for the Nigerian market continues as the Head of Trading and Products at NGX, Abimbola Babalola, noted improved performance across all asset classes in 2024. This improvement was attributed to the collaboration among market regulators, the government, and operators. He expressed optimism for continued market opportunities in 2025.
Additionally, the Association of Securities Dealing Houses of Nigeria (ASHON), represented by its second vice-chairman, Ify Ejezie, highlighted the association’s commitment to liaising with regulators and the government to promote sustainable market development.
Looking ahead, with inflation projected at 15% and the dominance of local investors, a bullish market trend is anticipated in 2025, boosting investor confidence and stock price stability.