The Nigerian stock market witnessed a historic rally in the first half of 2025, recording an impressive gain of N13.2 trillion in market capitalisation—fuelled by aggressive economic reforms, renewed investor confidence, and a rebound in foreign portfolio inflows.
Data from the Nigerian Exchange Limited (NGX) shows that market capitalisation rose from N62.763 trillion at the end of December 2024 to N75.964 trillion as of June 27, 2025, translating to a 21 percent increase. Likewise, the All-Share Index (ASI) jumped by 17.2 percent, from 102,926.4 to 119,955.76 points within the six-month period.
In the month of June alone, the market added N5.5 trillion in value, reflecting a rapid surge in trading activity and strong institutional participation across multiple sectors.
Analysts and capital market stakeholders attribute the bullish trend to key policy interventions from the Tinubu-led administration, especially in the areas of foreign exchange unification, removal of fuel subsidies, monetary tightening, and regulatory reforms aimed at improving the ease of doing business.
The successful implementation of the Nigerian Economic Stabilisation Plan (NESP) further bolstered investor sentiment, while efforts to resolve FX illiquidity—long seen as a barrier to foreign investment—have triggered the return of offshore capital into Nigerian equities.
David Adonri, Vice President of Highcap Securities Limited, said the market’s performance is a reflection of restored investor trust. “The resolution of trapped funds for foreign investors and policy clarity around foreign exchange management have reignited foreign and local interest,” he said.
He added that Nigeria’s improving macroeconomic outlook, coupled with sustained government commitment to policy execution, is repositioning the country as a top destination for investment in Africa.
Sector-wise, gains were driven by banking, oil and gas, telecommunications, and industrial goods. The uptick in corporate earnings, strong dividend declarations, and improved disclosures underpinned investor appetite, especially among long-term institutional investors.
Market leaders such as MTN Nigeria saw their stock surge from N242 in January to N357.50 by June. Honeywell Flour Mills soared from N10.00 to N21.20, while Caverton Offshore Support Group doubled from N2.38 to N5.22. Cornerstone Insurance and University Press also posted significant appreciation, reflecting sector-wide momentum.
The rally has seen the NGX emerge as one of Africa’s best-performing stock exchanges in 2025, reaffirming its strategic role in Nigeria’s economic recovery and capital mobilisation efforts.
Improved oil prices and increased diaspora remittances provided cushion for Nigeria’s external reserves, boosting market stability and reinforcing the CBN’s ability to manage liquidity pressures.
Foreign portfolio investors, who had previously exited due to FX repatriation concerns and inflation, are gradually returning. Analysts note that the gradual reduction in inflation and naira volatility are making Nigerian equities more attractive compared to other frontier and emerging markets.
While the H1 rally paints a bullish picture, market operators and analysts warn that policy consistency, security stability, and fiscal discipline will be crucial to sustaining growth in the second half of 2025.
Adonri emphasized, “We’ve seen what is possible when reforms are implemented with discipline. But to maintain this trajectory, the government must address insecurity, sustain FX market reforms, and improve infrastructure investment.”
He noted that failure to follow through could result in profit-taking or investor apathy.
Stakeholders are now calling for further capital market reforms, such as:
Incentivising dual listings for major firms like Dangote Refinery and NLNG to deepen market liquidity
Enhancing corporate governance enforcement
Strengthening investor protection frameworks
Introducing targeted tax reliefs for long-term investments
With the NGX positioned as a catalyst for economic recovery, market participants believe that the rally signals a turning point for Nigeria’s investment landscape—one that could catalyse job creation, infrastructure funding, and long-term economic resilience.