NGX, Stanbic IBTC Stockbrokers push for deeper equities liquidity through market making, securities lending

Nigerian Exchange Limited (NGX), in collaboration with Stanbic IBTC Stockbrokers Limited, has called for greater 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, at a webinar themed “Unlocking Liquidity in the Equities Market: The Role of Market Making and Securities Lending,” which brought together market operators and other stakeholders to examine how both mechanisms can support trade execution, price discovery and broader participation in the secondary market.

Opening the session, Jude Chiemeka, Chief Executive Officer of NGX, described liquidity as the “lifeblood of a functioning capital market,” noting that the strength of a market should be measured not only by the number of listed companies or its market capitalisation, but also by how efficiently investors can enter and exit positions, the competitiveness of bid-offer spreads and the quality of price discovery.

“Market making and securities lending are not simply technical market mechanisms; they are critical components of a modern market infrastructure. We commend the Securities and Exchange Commission, under the leadership of Dr. Emomotimi Agama, for creating an enabling regulatory environment for market making and securities lending. These initiatives provide a strong foundation for greater market participation, deeper liquidity, better price discovery and a more efficient and resilient Nigerian capital market,” Chiemeka said.

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Nigeria’s capital market currently has a combined capitalisation of about N213 trillion, comprising approximately N156 trillion in equities and N56 trillion in fixed income, while exchange-traded funds account for about N61 billion. With eight designated market makers and an established securities lending framework already in place, the market has a strong foundation for further developing secondary-market activity through increased participation in both mechanisms.

Jesse Van Rensburg, Head of Equities Sales Trading at Standard Bank Group, highlighted securities lending as an important tool for market makers, particularly in supporting two-way quotes and managing changing liquidity conditions.

He explained that market makers routinely navigate shifts in demand and supply, including periods when trading activity is more heavily weighted towards offers than bids. Access to securities lending, he noted, gives market makers greater flexibility to manage their inventories and respond to these market dynamics while continuing to provide liquidity to investors.

Van Rensburg also identified spread management, inventory risk and capital exposure as key considerations in effective market making. Access to a pool of lendable securities can help market makers manage positions more efficiently, deploy capital effectively and maintain their ability to provide liquidity across different market conditions.

The discussion highlighted the complementary relationship between market making and securities lending. Greater access to securities can strengthen the capacity of market makers to provide continuous liquidity, while increased market-making activity can, in turn, create a more active and dynamic environment for securities lending.

For brokers, the opportunity extends beyond trade execution to a broader role in liquidity formation. Greater participation in market making and securities lending can support more efficient execution, deepen trading activity and contribute to a more dynamic secondary market.

Realising the full potential of both mechanisms, however, will require continued collaboration across the market ecosystem, including brokers, market makers, custodians, asset managers, institutional investors, regulators and the Exchange. Key priorities will include improving securities availability, strengthening market infrastructure, enhancing transparency and risk management, and broadening investor participation.