Zenith Bank's market capitalisation has reached N5 trillion, marking a significant milestone for the lender amid a steady recovery in investor confidence. The achievement positions Zenith Bank as one of the most valuable firms on the Nigerian Exchange Limited (NGX). Analysts attribute the surge to improved earnings performance, strong corporate governance, and renewed foreign and domestic investor interest in Nigerian equities. The bank has maintained consistent dividend payouts and reported robust financial results in recent quarters, reinforcing its appeal to long-term investors.
At the same time, financial experts are calling on the NGX and relevant regulators to increase the minimum free float requirement for listed companies to 50 per cent of issued share capital. The current requirement stands at 20 per cent, a threshold critics say limits market liquidity and price discovery. Experts argue that a higher free float would allow more shares to be available for trading, reduce stock volatility, and attract institutional investors seeking deeper markets. The push comes as part of broader reforms aimed at revitalising Nigeria's capital markets and improving investor participation.
The same market celebrating Zenith Bank's N5 trillion valuation operates under a free float rule that experts say undermines that very success. If liquidity is key to such valuations, the continued tolerance of a 20 per cent float requirement contradicts the conditions needed for sustained growth. Nigerian investors may reap short-term gains, but structural constraints remain unaddressed. This gap benefits large shareholders more than the average trader.
💡 NaijaBuzz is an AI-assisted news aggregator. This content is curated from third-party sources — NaijaBuzz is not the original publisher and is not responsible for the accuracy of source reporting. The NaijaBuzz Take is AI-assisted editorial opinion only, not established fact. All persons mentioned are presumed innocent until proven guilty by a court of competent jurisdiction. NaijaBuzz does not endorse the views expressed in source articles.
