The Nigerian Exchange Group is pushing to deepen securities lending in Nigeria, seeking broader participation from investors and market intermediaries as the exchange works to improve liquidity and expand trading opportunities.
The initiative was highlighted by NGX Group alongside recent efforts to strengthen the capital-market ecosystem, with the exchange engaging Stanbic IBTC on measures to increase securities-lending activity. NGX has identified deeper liquidity as a key priority for developing a more efficient market.
Securities lending allows investors to temporarily lend shares to other market participants, creating additional liquidity and supporting strategies such as short selling and hedging. Wider adoption could therefore give institutional investors more tools to manage portfolios while increasing the depth of trading in listed equities.
The move comes as the NGX has experienced heavy volatility after its strong 2026 rally. The All-Share Index has recently fallen to 240,750.47 points, its lowest level since July 7, while market capitalisation dropped to about ₦155.4 trillion on Wednesday.
For investors, stronger securities lending could eventually improve market efficiency and liquidity, particularly in heavily traded stocks. However, its impact will depend on participation by institutional investors, availability of lendable securities and the development of supporting market infrastructure.
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