Nigeria’s equities market has delivered a record-breaking performance in 2025, adding N26.01 trillion in value within the first eight months of the year on the back of reforms, investor confidence, and stronger corporate earnings.
Figures from the Nigerian Exchange Limited (NGX) show that market capitalisation rose by 41.43 per cent from N62.76 trillion at the start of the year to N88.77 trillion at the close of trading on Friday, August 29. The All-Share Index also advanced by 36.31 per cent year-to-date, climbing from 102,926.40 points to 140,295.50 points.
Analysts attribute the rally to foreign exchange stability, recovery from FX losses, improved liquidity, capital inflows, dominance of local investors, bank recapitalisation, and reforms in the insurance sector.
“Yields in the money market are no longer attractive, and with inflation easing, discerning investors are turning to equities for higher returns,” said Aruna Kebira, Managing Director of Globalview Capital Limited.
Market leaders have driven much of the growth. BUA Foods Plc accounted for 11.96 per cent of total capitalisation with N10.62 trillion, while MTN Nigeria Communications Plc contributed 10.3 per cent with N9.13 trillion. BUA Foods’ strong performance lifted the NGX Consumer Goods Index by 84.24 per cent, making it the best-performing sector, while the Oil & Gas Index fell 12.19 per cent.
The year has also seen the listing of Legend Internet Plc and fresh capital-raising activities by banks, boosting market depth.
Looking ahead, analysts expect audited half-year results and interim dividends from banks to shape September’s trajectory.
“If issuers post stronger numbers than 2024, the market will reward them with higher prices and deeper liquidity,” Kebira said.
Kasimu Garba Kurfi, CEO of APT Securities and Funds Limited, projected that market capitalisation could surpass N100 trillion by December, citing FX stability, stronger fundamentals, and robust primary market activity.
Vice President of Highcap Securities, David Adonri, noted that blue-chip stocks such as Airtel Africa, Nestle, Nigerian Breweries, Cadbury, and MTN have fuelled much of the rally, while Cordros Research analysts said equities could benefit further if monetary policy begins to ease.
With inflation cooling to 21.88 per cent in July 2025 and Treasury bill yields falling, investors see room for continued gains. However, analysts warn that sustaining momentum will depend on consistent reforms and stable macroeconomic policies.
