Connect with us
Polaris bank
Fidelity ads
Stallion ads


5 Nigerian companies with a combined market value of 5% of Nigeria’s GDP 

Using the market capitalization of N12.9 trillion as of September 2019 and nominal value GDP of N129 trillion as of December 2018, Nigeria has a market cap to GDP percentage of 10%.



MTN Nigeria list on Nigerian Stock Exchange, MTN Nigeria listing

The 166 stocks listed on the Nigerian Stock Market had a market capitalization of about N12.9 trillion as at the end of September 2019. Market capitalization is basically the combined value of all stocks listed on the exchange at any period. 

Stock markets the world over consider market capitalization as an indication of how well funded and valuable the economy is, at least from the point of view of companies who employ the majority of their citizens and contribute immensely to tax revenues and dividend payment to shareholders. Thus, it is not surprising that most analysts like to relate their stock market size to the size of the economy (GDP).  

Take, for example, the United Kingdom, which is just 6 hours away from Nigeria by air. The country Kingdom has a market cap to GDP of over 100%. The United States likewise has over 130% as its market cap to GDP. Nigeria’s African neighbours, South Africa reports an even higher market cap to GDP ratio of about 260%. World Bank data places market cap to GDP ratio at over 90%. 

World-famous investor, Warren Buffet once remarked that whenever the ratio of market cap to GDP is over 100% it could indicate that the stock market is overvalued signaling a possible market downturn. Thus, investors track this metric religiously.  

Nigeria’s market cap to GDP: Using the market capitalization of N12.9 trillion as of September 2019 and nominal value GDP of N129 trillion as of December 2018, Nigeria has a market cap to GDP percentage of 10%. Nigeria’s market capitalization to GDP is one of the lowest in the world.  

In fact, about 6 Nigerian companies listed post about 6.5% of GDP indicative of the relatively low valuation of most of the stocks listed on the exchange.  The companies are as follows; 

Companies Market Cap 
MTN          2,656  
Dangote Cement          2,582  
Airtel          1,158  
Nestle          1,106  
GT Bank             859  
Combined          8,360 


What this means: A low market cap to GDP implies several issues that you should expect should be a major concern to investors and managers of the economy. Here are some examples; 

  • It suggests that Nigeria is basically dominated by smaller informal businesses. Data from the NBS buttresses this view as over 45% of the GDP is made up of the informal segment of the economy. 
  • Most large companies won’t list on the exchange for several reasons. MTN which just listed was coerced to list after its several skirmishes with the Nigerian Government. 
  • Startups and small businesses don’t consider the Nigerian Stock Exchange as a plausible exit for early investors. Since the banking consolidation of 2005/6 which saw many privately-owned Nigerian Banks list, we have not seen a repeat. 
  • There is also a considerable lack of interest in the stock market by retail investors. Nigerian stock market is largely patronized by institutional investors. However, retail investors typically provided huge source of capital and liquidity for the exchange.  
  • It also indicates that the stock market is not reliable for raising capital. As such, companies that need capital will rather list on foreign exchanges than in Nigeria.  
  • Another potential impact is that with a shallow stock market there are fewer investment options for Nigerians to invest their money.  



Nairametrics Research team tracks, collates, maintains and manages a rich database of macro-economic and micro-economic data from Nigeria and Africa. Our analysts share some of the data collated on Nairametrics, using formats such as docs, tables and charts etc. The team also publishes research based analysis as articles on a regular basis.



  1. austine

    October 13, 2019 at 10:47 am

    wow! quite informative

  2. Anodebenze

    October 14, 2019 at 3:32 pm

    what bloody nonsense,if you look at stats,nigerian stock market have declined in the 10yrs in volume,now whAT metholody ARE YOU APPLING HERE ? ON WHAT BASIS ARE YOU USING THIS DATA AND METHOLODY ?ON STOCK LIST ON IS ABOUT 178 COYS,AND THE MAJORITY OF THIS LIST COY CAME FROM THE BANK AS THE CBN FORCED THE HANDS OF THOSE BANKS TO MERGE.NOW IF YOU LOK AT THOSE stock,you’re talking about u.s stock market or the british stock market,you find,they have a higher and developed financial market and literacy,and they have have more than 1000 listed stock market in any other countries,maybe japan as they have a higher developed financial market,more than Germany or france even india.
    Maybe the nse will do more marketing and drive for more listed coy,and it can be done if they willed,wait a mins bismark rewane,who is a member of economic team,and his coy is called derivation,he may intervene as he have the eyes of Mr buhari,sorry I means eyes.they can relax some rules and simplfies the condition of getting more companies being listed.THEY CAN GET MORE LISTED COYS OF MORE THAN 50,000 WITHIN ONE YEAR,NOTHING IS IMPOSSIBLE

  3. chibuike dunstan

    October 14, 2019 at 8:27 pm

    Gtbank and the new generation banks may be over praised, but for me until th banks go into the rural areas, develop it themselves, i won’t value their abilities. example if you see union bank they interact with human beings of all classes,and improve the environment they find themselves.
    all these new generation banks run away from rural area that are more populated and use money to scrabble for already saturated cities. if they take their monies to this rural environments, they shall no doubt meet various small scale businesses that will improve their impact in the GDP of Nigeria

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Nairametrics | Company Earnings