Financial experts are urging regulators to raise NGX free float to 50%.
They believe this move will improve liquidity and strengthen market efficiency on NGX.
The Market Watch podcast featured this call, hosted by Frank Fagbo and Oge Obierika.
Analysts discussed reforms and reviewed current trends in Nigeria’s equities market.
Current NGX Free Float Rules
NGX currently requires companies to maintain 20% free float.
Main Board firms must also meet ₦20 billion market value thresholds.
Premium Board firms must meet ₦40 billion thresholds.
Growth Board rules still set lower requirements of 10% to 15%.
However, analysts Idika Aja and Muktar Mohammed argue these levels no longer fit the market.
In addition, they say modern markets demand deeper liquidity and wider participation.
Experts Trading Hours Expansion Plan
Meanwhile, NGX plans to extend trading hours from April 27, 2026.
It will run trading from 9:00 a.m. to 4:00 p.m. daily.
Also, it will shift the opening time earlier to 9:00 a.m.
As a result, the change will align Nigeria with global market standards.
Read Also: Guinea Insurance ₦5.8Bn Rights Issue On Weaker Earnings
Aja supports longer trading hours, but he stresses liquidity remains the main issue.
However, he argues trading hours alone will not improve market depth significantly.
Instead, he says increasing free float to 50% will boost trading activity.
Therefore, more shares in circulation will improve price discovery and participation.
Market Outlook and Valuation Debate
Meanwhile, Mohammed rejects claims that the market sits in a bubble.
Instead, he explains that stronger fundamentals drive recent gains, not speculation.
Furthermore, he adds that many stocks remain undervalued under PE and PEG ratios.
For example, some companies still trade below intrinsic value.
In particular, oil and gas upstream firms show strong fundamentals and growth.
Looking ahead, analysts expect short-term profit-taking in the equities market.
Consequently, investors may move funds into fixed income before returning to equities.
Meanwhile, NGX reforms aim to deepen participation and improve accessibility.
In fact, equities have recorded strong year-to-date performance.
As a result, growth reflects earnings strength, recapitalisation, and investor confidence.
However, liquidity constraints still limit the market’s full potential.
Therefore, experts insist higher free float could transform long-term market growth.
