The Nigerian Exchange (NGX) is set to introduce a major change to its pricing methodology that could reshape how share prices move on the local bourse, with new minimum trading volume thresholds required before stock prices can change.

The reform, confirmed in the Exchange’s updated Rulebook and corroborated by multiple market operators, is aimed at strengthening market integrity, improving price discovery, and reducing the influence of low-volume transactions on stock valuations.

Under the new framework, stocks will be grouped according to their share prices, with different minimum trading quantities required before a transaction can alter the published market price. Shares priced at N1,000 and above will require at least 10,000 units to trade before a price movement is recorded. Stocks trading between N500 and N999.99 will require a minimum of 50,000 units, while equities priced below N500 will require at least 100,000 units before their market prices can change.

The rule represents one of the most significant adjustments to NGX’s trading structure in recent years and could have far-reaching implications for investors, brokers, market makers, and listed companies. At its core, the reform seeks to address a longstanding concern within the Nigerian market: the ability of relatively small transactions to create outsized price movements that may not accurately reflect genuine investor demand or supply.

For years, a relatively modest trade could trigger a price change in certain equities, particularly where liquidity was thin. This often created distortions in valuation metrics, enabled speculative trading strategies, and, in some cases, exaggerated market sentiment.

The new structure raises the threshold for price adjustments, meaning stock prices will increasingly be determined by more meaningful trading activity rather than isolated transactions.

Market analysts believe the change is particularly important as the Nigerian market evolves into a trillion-naira ecosystem that now hosts several companies with market capitalizations running into trillions of naira. As valuations have expanded, many operators argue that the previous framework no longer reflects market realities.

NairaMetrics quoted Abiodun Ogunniyi, Head of Research at GTI Capital Limited, who said the adjustment addresses concerns that market operators have repeatedly raised over the years.

According to him, one of the major challenges facing high-priced stocks has been liquidity constraints, which often made price movements difficult and disconnected from underlying investor interest.

“The challenge with many high-priced stocks is that they tend to be illiquid. This adjustment is a response to concerns that have existed for some time and should make it easier for market prices to reflect investor demand,” Ogunniyi said.

He noted that many premium-priced stocks have historically depended on institutional transactions to influence market direction because the volume requirements needed to affect prices were often difficult to meet.

The revised framework, he argued, could make these stocks more responsive to genuine market activity and improve overall valuation efficiency.

Beyond improving pricing dynamics, Ogunniyi believes the reform may encourage broader participation in high-value stocks by reducing some of the structural barriers that have discouraged retail investors from engaging with premium equities.

He added that while the pricing adjustment is a positive step, regulators must continue addressing another major challenge facing the market: liquidity.

“We need to free up liquidity. The issue of free floats remains a major conversation in the market. More liquidity means better price discovery and a more efficient market,” he said.

Aruna Kebira, Managing Director of Globalview Capital Limited, described the new framework less as a revolutionary change and more as a return to a system previously used by the Exchange.

He noted that the market once operated under a similar structure, where volume thresholds varied according to stock prices.

“This was how it used to be. High-priced stocks required 10,000 units, medium-priced stocks required 50,000 units, while lower-priced stocks required 100,000 units. So, in many ways, the Exchange is returning to a framework that operators are already familiar with,” Kebira said.

In his view, the reintroduction of the framework reflects the evolution of the market rather than a reactionary policy response. Kebira argued that today’s market bears little resemblance to the one that existed when the rule was originally modified.

The emergence of trillion-naira companies, increased institutional participation, and greater market sophistication have changed the dynamics of trading, requiring periodic regulatory adjustments.

He maintained that such reviews are a normal feature of mature capital markets, where rules are continuously refined to reflect changing market conditions.

“When systems are introduced, they are tested over time. If market conditions change, regulators review them and make adjustments. That is part of market development and international best practice,” he said.

Beyond its immediate impact on trading activity, the NGX reform highlights a broader shift in regulatory thinking.

Globally, exchanges are increasingly focused on ensuring that prices are determined by meaningful liquidity rather than sporadic trades. The goal is to create a market environment where valuations better reflect genuine investor conviction and where prices are less vulnerable to manipulation or artificial swings.

However, the new rule comes at a remarkable time. The Nigerian local market has witnessed a surge in retail participation over the past two years, while institutional investors have become more active amid rising interest in equities as a hedge against inflation and currency weakness.

At the same time, regulators have intensified efforts to strengthen market transparency, improve governance standards, and enhance investor confidence.

The new pricing methodology appears designed to support those objectives.

However, the reform has come with potential risks.

Some traders worry that requiring larger transaction volumes before prices can move may reduce responsiveness in thinly traded stocks. In less liquid markets, genuine buying or selling interest may take longer to be reflected in market prices, potentially slowing price discovery.

Smaller investors could also find it more difficult to influence market direction in certain stocks, concentrating price-setting power among larger institutional players.

Against this backdrop, market observers expect the ultimate success of the reform to hinge on how effectively it balances two competing objectives: improving market stability while preserving efficient price discovery.

If successful, the changes could reduce price distortions, encourage deeper liquidity, and make valuations more reflective of underlying fundamentals. If not, concerns may emerge about reduced market responsiveness, particularly among smaller-cap stocks.

With the implementation date yet to be formally announced, brokers, traders, and institutional investors are closely monitoring developments and awaiting further operational guidance from the Exchange.

Bengaluru-based diversified real estate and investment firm RMZ is preparing a massive expansion into data centers, targeting 2-3 gigawatts of capacity over the next five years as part of a broader $35 billion investment drive aimed at capitalizing on India’s surging demand for AI and cloud computing infrastructure.

The company, which currently operates 250 megawatts, is in the final stages of discussions for three new projects that would push its total capacity above 1 gigawatt, Deepak Chhabria, president of RMZ Infrastructure, told Reuters on Thursday. By the end of this year, RMZ also plans to acquire additional land capable of supporting up to 2 gigawatts, positioning it as one of the more aggressive domestic players in what is becoming one of Asia’s hottest digital infrastructure battles.

In April, RMZ unveiled plans to invest more than $35 billion over five years to develop co-location data centers, AI factories, and related infrastructure, with the possibility of an initial public offering to help fund the growth. The announcement came amid a wave of commitments from global technology giants and Indian conglomerates pouring billions into the country’s digital backbone.

“We are seeing only positive signs from some of the hyperscalers, and I think by the middle of this year, we will start ramping up capacity as we get clients signed up,” Chhabria said, declining to name specific customers.

India’s digital infrastructure sector is on track to attract more than $50 billion in planned spending across data centers, cloud, and AI ecosystems. Global hyperscalers and domestic players alike are racing to secure computing capacity as artificial intelligence adoption accelerates across industries, from fintech and e-commerce to healthcare and government services.

The country’s large English-speaking talent pool, improving connectivity, and relatively lower operational costs compared to traditional hubs have made it an increasingly attractive destination.

RMZ, which already operates across major Indian cities including Bengaluru, Mumbai, and Hyderabad, views its data center push as more than just real estate development. Chhabria described it as a strategic entry point into allied businesses such as graphics processing units (GPUs), power infrastructure, and software services.

“Now we will use that as a stepping stone eventually to go up the food chain and build the bottom layer of power,” he said, referring to deeper involvement in the critical energy infrastructure that underpins AI and cloud computing operations.

The company built its existing 250-megawatt capacity through a joint venture with UK-based Colt Data Centre Services. Chhabria said the two partners are actively exploring further growth opportunities together, leveraging Colt’s international expertise and RMZ’s deep roots in the Indian market.

Timing in a High-Growth Market

RMZ’s ambitions align with a broader transformation underway in India’s technology industry. As global tech firms scramble to expand their AI footprints, securing reliable, scalable power and computing capacity has become a key competitive advantage. Delays in land acquisition, regulatory approvals, and power connectivity have slowed some projects, making companies with strong local presence and execution capabilities particularly valuable.

By focusing on both co-location facilities (where multiple clients share infrastructure) and dedicated AI factories, RMZ aims to serve a range of customers — from large hyperscalers needing massive scale to Indian enterprises seeking localized, compliant solutions.

The move into power infrastructure is significant, as reliable electricity remains one of the biggest constraints for data center development in India, where peak demand often strains the grid.

Chhabria’s comments suggest RMZ sees itself evolving from a real estate developer into a more integrated digital infrastructure provider. This “full-stack” approach could help insulate the company from pure-play real estate cyclicality while capturing higher-margin opportunities in the AI value chain.

India’s data center market is becoming fiercely contested. Global players such as Equinix, Digital Realty, and AWS are expanding aggressively, while domestic conglomerates including Reliance, Adani, and Tata are also making large bets. Foreign investment is flowing in, drawn by government incentives under initiatives like the IndiaAI Mission and production-linked incentives for electronics manufacturing.

RMZ’s $35 billion commitment stands out for its scale and speed. If executed, analysts believe it would place the firm among the leading capacity builders in the country at a time when demand forecasts continue to be revised upward. Industry estimates suggest India could need tens of gigawatts of additional data center capacity by 2030 to support its digital ambitions, creating room for multiple large players.

The joint venture with Colt provides RMZ with technical credibility and global best practices, while its local land bank and relationships give it an edge in navigating India’s complex regulatory and state-level approval processes. Success in the initial gigawatt-scale projects will be critical in building investor confidence ahead of any potential public listing.

For the broader Indian economy, RMZ’s expansion, and others like it, come with significant implications. Data centers are capital-intensive and create high-skilled jobs in engineering, operations, and maintenance. They also drive demand for ancillary infrastructure, from power generation to fiber optics and cooling systems.

At a time when India is positioning itself as a global technology and AI player, robust domestic capacity reduces reliance on foreign data centers and enhances data sovereignty.

However, power availability, water resources for cooling, and environmental clearances are persistent hurdles. Land acquisition in prime connectivity locations can be slow and contentious.

Still, Chhabria’s tone was optimistic, reflecting confidence that India’s digital infrastructure story is only beginning.