Dangote Refinery IPO could trigger a new wave of listings—NGX CEO

Nigeria’s capital market is experiencing a transformation as domestic investment, digital platforms, and large-scale fundraising contribute to a more robust ecosystem, according to Temi Popoola, CEO of NGX Group. The recent recapitalization of banks and the IPO of Dangote Petroleum Refinery have showcased the market’s capacity to attract substantial amounts of capital.

In an interview with Nairametrics, Popoola delves into the factors propelling domestic investor engagement and the implications for the market’s resilience and expansion. Domestic investors have dominantly led February 2026's transactions on NGX, with retail investors contributing N615.83 billion. Popoola highlights that the rise in domestic participation reflects the market's maturation, spurred by enhanced market knowledge, digital engagement, heightened awareness, and an expanding array of investment avenues.

This paradigm shift is vital for the market’s long-term health. A larger domestic investor base enhances market liquidity, mitigating reliance on any singular capital source, particularly crucial during periods of fluctuating global capital inflows. The challenge now is to channel these domestic savings towards productive investments that fuel businesses and economic expansion.

A capital market anchored by domestic investors not only fortifies resilience but also renders the market more enticing to foreign investors. Popoola elaborates on the banking recapitalization exercise, which showcased Nigeria’s ability to mobilize capital at a massive scale when regulatory frameworks, market infrastructure, issuers, and investors work in unison.

During this two-year period, 33 banks successfully raised N4.65 trillion in new capital. What set this endeavor apart was not just the magnitude of capital raised, but also the scale at which the infrastructure facilitating capital mobilization and distribution was tested. NGX Invest, launched in 2024 and approved by the Securities and Exchange Commission, played a pivotal role in this process, enabling the distribution of approximately N2.8 trillion in capital through digital channels.

This experience underscores that capital formation is contingent not only on the availability of capital but also on the efficacy with which capital is linked to investment opportunities. Technology has the potential to broaden distribution, engage a larger investor base, and alleviate the friction traditionally associated with participating in public offerings.

The subsequent step is to leverage this infrastructure more extensively across various sectors to enable the capital market to finance Nigerian enterprises and bolster economic growth on an unprecedented scale. Nigeria has taken significant strides to enhance market accessibility and international competitiveness, including the transition to T+1 settlement, as the market garner renewed interest from global index providers such as FTSE Russell and S&P Dow Jones Indices.

Popoola emphasizes the need to further strengthen Nigeria’s appeal to global capital while concurrently nurturing the robust domestic investor base that has increasingly bolstered the market. The path forward involves fostering a capital market that excels in both domestic and international investment landscapes. Strengthening domestic investor participation provides a resilient foundation for capital formation, whereas international participation injects additional capital sources, global connectivity, and diversification into the market.

Significant advancements have been made in market infrastructure. The switch to T+1 settlement has enhanced operational efficiency and aligned the market with global norms. Moreover, gaining recognition from global index providers elevates Nigeria’s profile within the global investment community. Looking ahead, the emphasis must be on broadening investability.

International investors scrutinize the depth and liquidity of the market, the caliber of investable assets, the efficiency of execution and settlement, and the ease of capital exit and repatriation. This necessitates ongoing enhancements in liquidity, corporate governance, disclosure, forex liquidity, and capital mobility, alongside a more unified and consistent policy and regulatory environment. Simultaneously, Nigeria boasts substantial domestic savings that can be effectively channeled.