Markets & Finance18 Oct 2026 · about 2 min

Over 40 Companies Raise N2.45 Trillion from Stock Market in Nine Months

The brief

The article records all four routes within the N2.45 trillion raised on the Nigerian Exchange between January and September 2026. Dangote Sugar used a rights issue, while several banks raised funds through rights issues or private placements. The choice of method determines who can invest and how ownership may change.

What does it mean for a company to raise money from the stock market through a public offer, rights issue, private placement, or supplementary listing?

How much capital was raised in total, how many companies participated, and which companies raised the largest amounts?

The article groups Fidelity Bank, UBA, FCMB Group, First HoldCo, Access Holdings, Sterling Financial Holdings and GTCO among the leading firms, with N883.8 billion in listings. GTCO listed N10 billion, while other named companies included Abbey Bank, insurance firms, Neimeth, Critical Minerals Financing Corporation and Eunisell Interlinked.

Why did companies turn to the Nigerian Exchange for funding instead of relying mainly on bank loans?

The exchange also benefited from stronger investor confidence, improved transparency and a T+1 settlement cycle. The All-Share Index rose 61.43 per cent year-to-date by September 2026. These conditions encouraged participation, although shareholders still faced risks and were not guaranteed higher dividends.

How did the Central Bank of Nigeria's requirement for banks to meet higher paid-up capital thresholds contribute to the surge in new listings?

Together with GTCO’s N10 billion listing, these financial institutions accounted for N883.8 billion in listings during the period. The recapitalisation drive therefore lifted overall market activity, while requiring boards to use the new funds effectively and deliver stronger value for shareholders.

What could companies and the wider economy gain from this new capital in terms of production, technology, jobs, and financial stability?

The outcome depends on execution. Boards face pressure to increase production, pay good dividends and appoint suitable leaders because their reputations are at stake. Shareholders’ representative Patrick Ajudua warned that raising capital does not automatically produce higher dividends or immediate jobs, and investment still carries risk.

What other ways can companies raise long-term capital, and how do those alternatives compare with issuing shares?

Kebira argued that equity was the cheapest option for running and expanding a manufacturing organisation because interest must be paid regardless of profitability. The market’s N2.45 trillion result shows strong use of equity, but Ajudua’s warning remains important: raising funds does not guarantee better dividends or jobs.

Why does buying shares provide capital to a company, while a bank loan creates an obligation to repay interest regardless of whether the company makes a profit?

That distinction explains why Kebira called equity the cheapest way to expand a manufacturing organisation. Profits can be reinvested instead of being used mainly for interest payments. However, shareholders still bear risk, and the article notes that fresh capital does not automatically produce higher dividends or better company results.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.