In a remarkable show of strength and investor optimism, the Nigerian Exchange Limited (NGX) continues its historic upward march, with the All-Share Index (ASI) hitting a record high and registering a jaw-dropping 27% gain year-to-date (YTD)—the highest among African stock exchanges so far this year.
With an unbroken streak of nine consecutive days of positive trading, the NGX is making headlines at home and abroad, turning heads in global investment circles and rekindling faith in the power of Nigeria’s financial markets.
“We’ve not seen this kind of sustained market momentum in over a decade. The confidence is real, and it’s showing across all sectors,” says Adebayo Adetunji, equity strategist at Access Securities.
🇳🇬 Nigeria Takes the Lead in Africa’s Equities Race
While several African markets have been weighed down by uncertain macroeconomic climates and sluggish growth, Nigeria’s capital market is defying expectations, charting a powerful course fueled by a mix of fiscal reforms, policy stability, and rising investor appetite.
The All-Share Index has now crossed the 126,000-point threshold—marking the highest close ever recorded on the NGX. With this performance, market capitalization has surged past ₦78 trillion as blue-chip stocks rally across various sectors.
Increased foreign portfolio inflows have played a crucial role, with foreign investor activity rebounding to over 32% of total market participation, a considerable jump from the sub-15% levels seen in early 2024.
Leading the charge are strong performances from banking, consumer goods, energy, and telecom stocks. Companies like Zenith Bank, Dangote Sugar, MTN Nigeria, and Seplat Energy have been instrumental in this explosive growth, offering strong earnings and improved investor outlook.
🔍 What’s Driving This Historic Bull Run?
Several compounding factors are behind the market’s impressive stride. Consistency in government policy has been one of the leading drivers.
Investors are warming up to a clearer economic direction under the current administration, with the bold removal of fuel subsidies, continued FX market reform, and renewed privatization efforts praised for enhancing market transparency and business confidence.
The Central Bank’s currency strategy has also played an important role. The stabilizing of the naira—currently trading within a narrow band—has strengthened investor trust in the economy’s fundamentals.
Furthermore, tight monetary policy measures have managed to control inflation without stifling growth, ensuring the cost of borrowing remains favorable for businesses. Rising domestic participation from pension funds, asset managers, and retail investors is further energizing the equities market, as Nigerians seek returns that can outpace inflation.
“Nigeria’s capital market is responding to long-overdue structural reforms. There’s still some risk, but the sentiment is powerfully positive right now,” adds Ngozi Emeka, CEO of Tradewise Asset Management.
⚠️ Still, Some Clouds Linger…
Despite the buoyant atmosphere, market analysts are quick to point out that inflation—currently hovering above 23%—remains a major concern.
If it continues unchecked, it could undercut company earnings and curb consumer spending, ultimately threatening the sustainability of the bull run.
Moreover, geopolitical tensions in certain regions of the country, insecurity, and disruptions to food supply continue to pose risks to the broader economic recovery. Analysts also caution that any policy missteps or backtracking on reforms could quickly dampen investor enthusiasm.
“This rally is sustainable only if macroeconomic indicators continue to align with investor expectations,” warned Chuka Udeh, senior analyst at Nova Capital.
💬 Quote of the Day
“The Nigerian stock market is no longer a sleeping giant—it’s wide awake and ready for the world to notice.”
— Titi Bakare, Managing Director, Heritage Securities Ltd.
With momentum building and investor sentiment broadly positive, many analysts expect the NGX to maintain its bullish stance through the second half of 2025. Yet, much still depends on continued economic discipline, effective inflation control, and policy transparency from both fiscal and monetary authorities. For now, Nigeria’s equities market is Africa’s golden goose, and global investors—once cautious—are now keeping their eyes firmly on Lagos.
