.
The Nigerian Exchange Limited (NGX) and Stanbic IBTC Stockbrokers Limited have called for broader participation in market making and securities lending as part of efforts to deepen liquidity, improve price discovery and strengthen the efficiency of Nigeria’s equities market.
The call was made on Tuesday, August 18, 2026, during a webinar themed “Unlocking Liquidity in the Equities Market: The Role of Market Making and Securities Lending.” The session brought together market operators and other stakeholders to examine how both mechanisms could improve trade execution and encourage greater participation in the secondary market.
NGX: Liquidity Critical to Market Efficiency
Opening the session, Jude Chiemeka, Chief Executive Officer of NGX, described liquidity as a fundamental component of a functioning capital market.
He argued that the strength of an exchange should not be judged solely by the number of companies listed or the size of its market capitalisation, but also by how easily investors can enter and exit positions, the competitiveness of bid-offer spreads and the reliability of price discovery.
Chiemeka said market making and securities lending should be viewed as essential parts of modern market infrastructure rather than merely technical trading mechanisms.
He also commended the Securities and Exchange Commission (SEC) for establishing what he described as an enabling regulatory environment for both activities.
Market Capitalisation Stands at About ₦213tn
Nigeria’s capital market currently has a combined capitalisation of approximately ₦213 trillion, comprising about ₦156 trillion in equities and ₦56 trillion in fixed income.
Exchange-traded funds account for another ₦61 billion.
The market already has eight designated market makers and an established securities-lending framework, providing what stakeholders see as a foundation for expanding secondary-market activity.
The challenge now is to increase participation and ensure the available mechanisms are used more extensively.
Securities Lending Can Strengthen Market Making
Jesse Van Rensburg, Head of Equities Sales Trading at Standard Bank Group, highlighted the role securities lending can play in helping market makers maintain two-way quotations.
Market makers regularly face changes in demand and supply, including periods when investors are predominantly selling rather than buying. Access to securities lending can give them greater flexibility to manage inventory and respond to changing market conditions while continuing to provide liquidity.
Van Rensburg identified spread management, inventory risk and capital exposure as important considerations in market-making activities.
Access to a pool of securities available for lending, he explained, can help market makers manage their positions more effectively and deploy capital while maintaining liquidity across different market conditions.
Two Mechanisms That Complement Each Other
The discussions underscored the close relationship between market making and securities lending.
Greater availability of securities can improve market makers’ ability to provide continuous liquidity, while increased market-making activity can create a more active environment for securities lending.
For brokers, the opportunity extends beyond simply executing trades. Greater involvement in both activities could help brokers contribute more directly to liquidity formation and the development of a deeper secondary market.
Broader Participation Needed
Stakeholders noted that unlocking the full benefits of market making and securities lending will require cooperation across the financial-market ecosystem.
This includes brokers, market makers, custodians, asset managers, institutional investors, regulators and the Exchange.
Among the priorities identified are improving the availability of securities for lending, strengthening market infrastructure, increasing transparency, improving risk-management systems and widening investor participation.
Push Comes as NGX Seeks a More Dynamic Market
The renewed focus on market making and securities lending comes as Nigeria seeks to build a more liquid and efficient equities market.
A deeper market could make it easier for investors to execute transactions without significantly affecting prices, while stronger price discovery could improve confidence among domestic and international participants.
For NGX and Stanbic IBTC Stockbrokers, the objective is therefore not simply to increase trading volumes, but to build a market where liquidity is more consistently available across different market conditions.
The success of the initiative will ultimately depend on whether more market participants make use of the mechanisms already available and whether continued regulatory and infrastructure improvements can support their expansion.
