The Nigerian capital market has had an autonomous existence since 1960 when on independence from the UK, the Lagos Stock Exchange took over some of the capital-raising functions previously exercised in London. Later renamed and reconstituted as the Nigerian Stock Exchange (NSE), it has been the focal point of Nigeria’s capital market ever since.
In contrast to the era of military misrule, during the two Obasanjo administrations – and in large part due to the reforms the government has introduced – the Nigerian capital market has become increasingly effective at mobilising long-term funds for investment. Besides its Lagos headquarters, the NSE now operates trading floors in Port Harcourt, Kaduna, Ibadan, Kano and Onitsha, listing more than 280 companies with a combined market capitalisation exceeding N5,500bn ($44bn). The NSE, like all other aspects of the capital market, is regulated by the Nigerian Securities and Exchange Commission (SEC).
