Experts push reform to strengthen Nigerian stock market

Financial experts are calling on the Nigerian Exchange Limited (NGX) and regulators to increase the minimum free float requirement for listed companies from the current 20% to 50%.

They believe this change would improve market liquidity, meaning more shares would be available for trading, and this would make the stock market more active and efficient.

Currently, companies on the NGX Main Board must have at least 20% of their shares available to the public, or meet a minimum market value requirement.

The Premium Board has higher financial requirements, while the Growth Board allows lower free float levels of about 10%–15%.

Market analysts say that while NGX plans to extend trading hours to match global standards, this alone will not solve liquidity problems.

They argue that increasing the number of shares available for trading is more important.

Experts also noted that the current rise in stock prices is based on strong company performance, not speculation or a market bubble.

They say many stocks are still undervalued when compared to their real earnings potential.

The discussion comes as NGX prepares to extend trading hours from April 27, 2026, opening earlier at 9:00 a.m. and closing later at 4:00 p.m. This is expected to give investors more time to trade.

However, analysts believe the biggest challenge in the market is still low liquidity.

They say raising free float to 50% could help solve this and attract more investment into Nigerian stocks.