Nigeria’s Stock Market Soars 31% in 2026 as Naira Rally Lifts Market Cap by $21 Billion
- Nigerian equities ranked second globally for dollar returns in 2026, surging 31% this year
- Market capitalisation climbs to $84 billion, reflecting investor optimism and corporate recovery
- Naira strengthens over 7% against the dollar, boosting foreign investor confidence in Nigeria's market
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian equities have emerged as one of the hottest trades globally in 2026, ranking second in the world for dollar-denominated returns as the naira strengthens and investor confidence rebounds.
According to a report by Bloomberg published on February 17, 2026, Nigeria’s benchmark index has surged 31% this year, delivering the world’s second-best dollar returns.
Source: Getty Images
The performance significantly outpaces the 11% gain recorded by the broader emerging-market index and the 6.4% advance seen in frontier-market stocks.
The rally marks a dramatic turnaround for a market that suffered heavy losses after the sharp naira devaluation of 2024. Since then, Nigerian stocks have recovered an estimated $21 billion in market value.
Market capitalisation climbs to $84 billion
Total market capitalisation on the Nigerian Exchange Group now stands at approximately $84 billion.
That figure represents a 58% increase compared to levels recorded before the currency’s collapse.
The rebound reflects renewed optimism among both domestic and international investors who had previously stayed on the sidelines during periods of volatility and foreign exchange uncertainty.
Analysts say much of the recovery is tied to improved corporate performance.
Companies that were battered by the naira’s steep fall have strengthened their balance sheets and returned to profitability. With earnings stabilising, investors are increasingly pricing in growth prospects.
Market watchers note that the rebound is not just technical but supported by fundamentals.
Improved liquidity conditions and clearer policy direction have also contributed to the surge in equities.
Naira among world’s strongest performers
The stock rally has been reinforced by a stronger currency. The naira has gained more than 7% against the US dollar this year, making it the world’s second-best performing currency among those tracked by Bloomberg.
Currency stability has historically been a key concern for foreign investors in Nigeria.
The current appreciation has eased fears about capital erosion and improved sentiment toward local assets.
Foreign investors return in force
Foreign participation in Nigeria’s equities market has climbed sharply. Data from the Nigerian Exchange Group shows that non-Nigerian trading in local stocks hit a 19-year high in 2025. Transactions tripled to 2.65 trillion naira, up from 852 billion naira the previous year.
This renewed foreign appetite signals growing confidence in Nigeria’s reform trajectory and macroeconomic outlook.
Fresh listings could push market beyond $100 billion
Analysts believe the rally could extend further, especially if planned mega listings materialise.
Expectations are building around the potential public offerings of the refinery and fertiliser businesses owned by Aliko Dangote.
If those listings go ahead, market capitalisation could surpass the $100 billion mark this year, with projections of up to 34% capital gains.
Reform agenda fuels optimism
The resurgence follows sweeping economic reforms introduced by President Bola Tinubu, including the liberalisation and unification of Nigeria’s foreign-exchange market.
The earlier devaluation, though painful, was part of efforts to attract investment and restore market transparency.
Source: Getty Images
Two years after that turbulent adjustment, Nigeria’s equity market appears to be reaping the rewards.
With stronger corporate earnings, a firmer naira, and renewed foreign participation, the country has firmly returned to the global investment spotlight.
Naira rallies to N1,390 in parallel market
Legit.ng earlier reported that the naira recorded a strong rebound in the parallel market on Monday, February 16, 2026, appreciating to N1,390 per dollar and further closing the gap with the official foreign exchange window.
The latest movement represents a 2.16 per cent gain compared to the N1,420 quoted last Friday, February 13.
Street traders confirmed that the local currency gained N30 within one trading session, reflecting renewed confidence and improved dollar liquidity in the informal market.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
