NGX free float increase 50% proposal gains support from experts who say higher share availability will improve liquidity and strengthen Nigeria’s stock market

Financial experts have urged the Nigerian Exchange Limited (NGX) and market regulators to raise the minimum free float requirement for listed companies from 20% to 50%, in a move they say would significantly improve market liquidity.

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NGX Plan to Hike Free Float Threshold to 50% is aimed at making more shares available for public trading, which analysts believe would enhance activity and efficiency in the stock market.

Under current rules, companies on the NGX Main Board are required to maintain at least 20% free float or meet a minimum market capitalisation threshold, while the Premium Board enforces stricter financial conditions. The Growth Board, however, allows lower free float levels ranging between 10% and 15%.

Market analysts argue that simply extending trading hours, which NGX plans to implement from April 27, 2026, will not adequately address liquidity challenges. Instead, they say increasing the volume of tradable shares is more critical.

Experts further noted that recent gains in the stock market are being driven by strong corporate performance rather than speculative activity, adding that many equities remain undervalued relative to their earnings potential.

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They believe that raising the free float requirement could attract more investment, deepen market participation, and strengthen overall market stability in Nigeria’s capital market.